Medium stores
By Furniture Today Staff -- Furniture Today, September 11, 2005
$5–20 million in annual sales
Efficiency measures
| Hours open per week | 59 |
| Gross margin percentage | 45% |
| Close ratio | 33% |
| Sales per sales employee | $508,905 |
| Sales per square foot of selling space | $165 |
| Return on sales | 2% |
| Return on assets | 1% |
| Return on net worth | 3% |
| Stock turns | 3.1 |
Space allocation
| Selling space | 62% |
| Selling space | 62% |
| Warehouse | 30% |
| Administrative | 6% |
| Other | 2% |
Non-store activities
| % of stores ... | |
|---|---|
| Offering in-home design consultations | 63% |
| With a Web site | 78% |
| Also selling through a catalog | 5% |
Sourcing
Direct importing
56% of retailers imported directly in 2004
8% of retailers who did not import directly in 2004 will in 2005, while 3% who imported in 2004 will not in 2005
Buying groups
43% of medium-sized stores belonged to a buying group in 2004
Private label
33% of medium-sized stores offer private-label merchandise
| Revenue sources | |
|---|---|
| Merchandise sales | 96% |
| Finance/credit income | 3% |
| Income from services | 1% |
| Other income | &1% |
| Expense allocations | |
|---|---|
| Merchandise costs | 56% |
| Payroll | 20% |
| Occupancy costs | 9% |
| Advertising | 7% |
| Other | 8% |
Employees and payroll
A median of 15% of payroll goes to fringe benefits
| Full-time | Part-time | |
|---|---|---|
| Sick leave with pay | 75% | 29% |
| Vacation with pay | 98% | 29% |
| Health insurance | 95% | 21% |
| Dental insurance | 40% | 7% |
| Other insurance, life, disability, etc. | 43% | &1 |
| Retirement/pension plan | 63% | 7% |
| Merchandise discounts | 88% | 86% |
| Other | 8% | 14% |
| Payroll costs by function | |
|---|---|
| % of payroll dollars spent on ... | |
| Administrative, office | 31% |
| Sales | 40% |
| Warehouse, delivery | 22% |
| Repair/deluxing | 3% |
| Janitorial/maintenance | 2% |
| Other | 3% |
| Full-time sales managers | Full-time sales associates | Part-time sales associates | |
|---|---|---|---|
| Hourly | 9% | 10% | 25% |
| Salary only | 42% | 3% | &1 |
| Salary plus commission | 36% | 33% | 35% |
| Commission only | 6% | 59% | 50% |
| Bonus for performance | 55% | 13% | 15% |
| Lowest | Highest | |
|---|---|---|
| Buyers | $43,500 | $50,000 |
| Store managers | $43,400 | $60,000 |
| Sales managers | $40,000 | $60,000 |
| Sales staff | $26,750 | $65,000 |
Advertising & promotions
| Allocating the ad budget | |
|---|---|
| % of ad dollars spent on ... | |
| TV | 37% |
| Newspaper | 26% |
| Radio | 5% |
| Direct mail | 19% |
| Other | 13% |
| Mark-downs are taken | |
|---|---|
| % of stores taking mark-downs | |
| Never | 5% |
| Annually | 3% |
| Twice a year | 15% |
| 3–6 times a year | 18% |
| More than 6 times a year | 10% |
| Maintain a clearance area all year | 49% |
| Median mark-down 25% | |
Source: Furniture/Today market research
Other includes local, state and regional magazines, Yellow Pages, sponsorships, in-store events and billboards
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