Retail Key Ratios Benchmarks 




6 Key Ratios

5-Year Trend Charts

54 Retail Segments

 


Have other questions? 

Go to the Retail Benchmarks Resource Center. Free to everyone to use.

 

 

"How can these benchmark numbers be used?"

  1. For perspective. Calculate these ratios for your own business, and then see how you compare to your retail industry segment.
  2. Use these benchmarks when you are setting your own target ratios for the next year.
  3. You should know that when you are seeking a bank loan for your business, the bankers will look at these industry benchmarks as they assess your store's performance.

Retail Segments

Find your retail segment below • click its name to go to its own page • see Benchmark 5-Year Trend Charts

Furniture & Home Furnishings Stores
Furniture StoresFloor Covering StoresHome Furnishings Stores

Building Material & Garden Equipment & Supplies Dealers
Home CentersPaint & Wallpaper StoresHardware StoresLumber & Building Materials DealersOutdoor Power Equipment StoresNursery, Garden Center & Farm Supply Stores

Food & Beverage Stores
Baked Goods StoresSupermarkets & Grocery StoresConvenience StoresGasoline Stations with Convenience StoresMeat MarketsFruit & Vegetable MarketsFood (Health) Supplement Stores • Candy & Nut StoresBeer, Wine & Liquor Stores

Health & Personal Care Stores
Cosmetics, Beauty Supplies & Perfume StoresPharmacies & Drug StoresOptical Goods Stores

Clothing & Clothing Accessories Stores
Men's Clothing StoresWomen's Clothing StoresFamily Clothing StoresClothing Accessories StoresShoe StoresJewelry Stores

Recreation & Leisure Activities Stores
Sporting Goods StoresHobby, Toy & Game StoresMusical Instrument & Supplies StoresBookstores

General Merchandise Stores
Department StoresVariety Stores

Electronics & Appliance Stores
Audio/Video & Consumer Electronics StoresHousehold Appliances

Other Specialty Retail Stores
Art DealersFlorists  • Gift, Novelty, and Souvenir StoresOffice Supplies and Stationery StoresPet and Pet Supplies Stores
Used Merchandise Stores

Motor Vehicles & Parts Dealers
Auto Parts & Accessories StoresBoat DealersMotorcycle DealersNew Car DealersRecreational Vehicle DealersTire DealersUsed Car Dealers

Non-Store Retailers
Online ShoppingMail Order HousesKiosks


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Which Bank for You?
Which Bank for You?

Bankers - Where Are They When You Need Them?

Most retailers are constantly in and out of the debt market to finance daily operations.  Having a reliable lender is vital to your success.  Recognize that your banker - the "relationship manager" - is in fact a salesperson; the actual credit decision will be made by "the loan committee".

Your responsibility is to arm your banker to effectively present your request to the Loan Committee.  And that demands that you "speak their language". Especially in today's economy, the need to speak "Conversational Banker-ese" is greater than ever.

Plus, consider carefully the pro's and cons of different types of financial partner you might approach. Let's start with an overview. 

  Advantages Disadvantages
Traditional
Banks
  • Stability
  • Array of financial services
  • Many to choose from
  • Competitive pricing
  • Lack of retail industry experience or focus
  • Often slow to respond; impersonal
  • Less interested in smaller transactions
  • Generally available only to profitable companies
Private Equity Funds
  • Provide "hands on" value/added expertise
  • Generally well-capitalized
  • May provide access to industry and management expertise
  • Provide "hands on" value/added expertise (Yes, it's the good news/bad news thing!)
  • Strict investment criteria
  • Equity ownership required
  • Required returns often 25% +
  • Require track record of a proven concept
Asset-Based Lenders
  • Nontraditional transactions
  • Fewer financial covenants
  • Industry focused
  • Rigid documentation standards
  • Higher transaction costs
  • Onerous reporting
  • Traditionally perceived as lending only to troubled companies

The Institute's Owner's Dashboard
The Institute's Owner's Dashboard

Focus on Your Financial Strength 

Use The Institute's Owner's Dashboard Trend Form to track your progress. It's a simple - yet powerful! - three-step process:

Step 1: Enter LY results for five key ratios

Step 2: Enter This Year's Targets

Step 3: Each month (no later than the 10th of the month!) enter YTD results

Immediately see whether - and if so, where - you need to make adjustments now to achieve the results you want. "Lead time" is one of your most valuable assets.  Use our Owner's Dashboard Trend Form  to put time on your side.

(Need more info on these ratios, how to calculate them, and what they mean?  See the Retail Finance Basics section here at The ROI.  And, view this online webcast from The ROI Co-Founders for more about the Owner's Dashboard. Click here to download and printout your own master copy of the Owner's Dashboard Trend Form)


The ROI's OWNER'S DASHBOARD form
The ROI's OWNER'S DASHBOARD form

Focus on Your Financial Strength 

Use The Institute's Owner's Dashboard Trend Form to track your progress. It's a simple - yet powerful! - three-step process:

Step 1: Enter LY results for five key ratios

Step 2: Enter This Year's Targets

Step 3: Each month (no later than the 10th of the month!) enter YTD results

Immediately see whether - and if so, where - you need to make adjustments now to achieve the results you want. "Lead time" is one of your most valuable assets.  Use our Owner's Dashboard Trend Form  to put time on your side.

(Need more info on these ratios, how to calculate them, and what they mean?  See the Retail Finance Basics section here at The ROI.  And, view this online webcast from The ROI Co-Founders for more about the Owner's Dashboard. Click here to download and printout your own master copy of the Owner's Dashboard Trend Form)


Where Do I Start?
Where Do I Start?
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