The ROI site displays key business performance benchmark data for 50+ separate retail segments, from hardware stores to bookstores, to clothing stores, gift shops, wine stores, music stores, furniture stores, tire dealers, and more.
On these Segment Pages, The ROI presents an Owners Dashboard of six key ratios that we have selected as particularly important for retailers to monitor.
In addition, The ROI has charted and graphed the five-year trends of these six key ratio performance metrics for independent retailers.
How can these benchmark numbers be used?
First, for perspective. Calculate these ratios for your own business, and then see how you compare to your retail industry segment. Have questions about how to read these ratios, or what they really mean? See The ROI's Retail Finance Basics section. Want a refresher on the formulas and how to calculate these ratios with a pencil? See The ROI's "Cheat Sheet" Quick Reference Guide.)
Second, use these benchmarks when you are setting your own target ratios for the next year. And third, you should know that when you are seeking a bank loan for your business, the bankers will look at industry benchmarks such as these as they assess your store's performance.
The retail segments featured at The ROI reflect the definitions and designations of the North American Industrial Classification System. Retailers may need to examine the benchmark numbers in more than one segment to get perspective on their own store's performance, particularly if their store does not exactly fit the NAICS category.