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The basics, 2006

Staff Staff -- Furniture Today, September 10, 2009

Deferred financing % of retailers offering 75%

Cancellations

  • A median of 2% of gross written sales are cancelled before delivery.

  • 56% of retailers charge a restocking or other type fee for orders cancelled before delivery.

Types of fees charged for cancellations

  • Of those retailers charging fees, 46% charge a percentage of the order.

  • Another 46% of retailers charging fees say the fee depends on circumstances.

  • 8% charge a flat fee.

Efficiency measures
medians
Hours open per week 54
Close ratio 31%
Gross margin percentage 44%
Sales per sales employee $515,943
Sales per square foot of selling space $141
Return on sales 4%
Return on assets 6%
Stock turns 3.2x
Number of customers per sales employee per week 30
Number of purchasers per sales employee per week 10
Non-merchandise activities
Percentage of retailers offering
Delivery 79%
Accounting for 75% of sales transactions and a median of 2% of their revenues
Web site 64%
25% of those with a Web site accept online orders, accounting for a median of 2% of their revenues
Fabric protection 53%
Accounting for 15% of sales transactions and a median of 2% of their revenues
In-home design consultations 33%
Accounting for 10% of sales transactions and a median of 10% of their revenues
Other protection programs 16%
Accounting for 10% of sales transactions and a median of 2% of their revenues
Store catalog — 8%
Not including special orders using a manufacturer's catalog.
Accounting for a median of 20% of their revenues.

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