Share this on

The basics, 2006

By Furniture Today Staff -- Furniture Today, September 9, 2007

Cancellations

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.

Share this on

All furniture stores: Key operating numbers

Jan 7, 2007

Also by this author

Also by Staff Staff

Featured Company

FurnitureCore.com

FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more

Related Resources

Atlanta International Gift & Home Furnishings Market

Here is a selection of products shown at this month's International Gift & Home Furnishings Market here.

Networking at the 13th annual F/T Leadership Conference

NAPLES, Fla. — Industry executives and guests took the opportunity to network and play golf during down time at Furniture/Today's 13th annual Leadership Conference here this month.