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Measuring your store's performance
By Furniture Today Staff -- Furniture Today, December 26, 2004
| Large stores >$20 M | Medium stores $5–$20 M | Small stores $2–$5 M | Smallest stores & $2 m | Your store 2004 | Your store goal 2005 | |
| Source: Furniture/Today market research and Karen Haver, CPA | ||||||
| Efficiency measures | ||||||
| The sales floor | ||||||
| Median response | ||||||
| Hours open a week | 71 | 60 | 55 | 52 | ||
| Customer visits per week per sales employee | 49 | 23 | 25 | 30 | ||
| Close ratio Percentage of customer visits that result in a sale | 32% | 29% | 37% | 32% | ||
| Sales per salesperson Median response | $626,403 | $476,000 | $446,764 | $336,000 | ||
| Gross margin percentage Median response | 42% | 42% | 44% | 43% | ||
| Return on sales Median response | 3% | 2% | 3% | 5% | ||
| Return on assets Median response | 7% | 3% | 8% | 9% | ||
| Transaction types | ||||||
| Percentage of sales by payment type | ||||||
| Cash | 42% | 38% | 46% | 37% | ||
| Bank cards | 24% | 30% | 34% | 41% | ||
| In-house credit Deferred payment plans offered by the store and managed by the store | 22% | 24% | 13% | 11% | ||
| Other financing Deferred payment plans offered by the store and managed by a third party | 13% | 9% | 8% | 11% | ||
| Merchandise returns | ||||||
| Percentage of merchandise returned by customer for any reason | ||||||
| Median response | ||||||
| Case goods | 4% | 4% | 2% | 1% | ||
| Upholstery | 4% | 2% | 2% | 1% | ||
| Accessories | 4% | 2% | 2% | 1% | ||
| Advertising and promotions | ||||||
| Advertising as a percentage of sales | 6% | 5% | 6% | 5% | ||
| Median response | ||||||
| Received co-op advertising dollars from manfacturers | 78% | 82% | 71% | 51% | ||
| Frequency of marked-down sales | ||||||
| Never | 14% | 3% | 13% | 14% | ||
| Annually | 9% | 12% | 9% | 9% | ||
| Twice a year | 32% | 23% | 20% | 33% | ||
| Four times a year | 14% | 22% | 24% | 19% | ||
| Five or more times a year | 31% | 40% | 34% | 25% | ||
| Average mark-down (median) | 18% | 15% | 25% | 25% | ||
| No-no-no financing | ||||||
| Offered no-no-no financing | 100% | 97% | 94% | 100% | ||
| % of sales financed no-no-no | 20% | 25% | 25% | 25% | ||
| Type of advertising used | ||||||
| Newspaper | 91% | 94% | 93% | 78% | ||
| TV | 87% | 80% | 58% | 47% | ||
| Direct mail | 65% | 77% | 64% | 38% | ||
| Radio | 70% | 65% | 52% | 52% | ||
| Yellow Pages | 48% | 68% | 66% | 53% | ||
| Internet | 30% | 35% | 28% | 13% | ||
| In-store events | 26% | 18% | 20% | 12% | ||
| Other | 22% | 18% | 14% | >1% | ||
| Includes billboards, inserts and mall events | ||||||
| Sponsorships | 17% | 36% | 36% | 23% | ||
| Local/regional/state magazine | 13% | 33% | 21% | 14% | ||
| Wages and benefits | ||||||
| Median responses | ||||||
| Payroll as a percentage of revenues | 16% | 19% | 18% | 18% | ||
| Includes all payroll costs, salaries, bonuses and commissions | ||||||
| Benefits as a percentage of revenues | 3% | 4% | 4% | 5% | ||
| Includes all payroll taxes, workers' compensation, retirement, group health, disability, etc. | ||||||
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