Retail stats include sales revenue growth, percentage of gross profit, sales returns and rebates, same-store sales, and employee turnover. These metrics provide information about a company’s inner workings and allow for comparisons with other businesses. Sales growth, gross profit percentage, returns, and employee turnover are all important metrics for retail companies to track.
Retail stats are different metrics that a business will use to measure its strength. While retail companies may use a mix of standard and specialized statistics, the industry generally focuses on a few universal metrics. The most common retail statistics include sales revenue growth, percentage of gross profit, sales returns and rebates, same-store sales, and employee turnover. Each of these can provide internal and external users with information about the inner workings of the company. Statistics also provide companies with the ability to make comparisons with other companies.
Sales growth represents the increase in total sales revenue from one period to the next. Retail businesses can compare the current month with the previous month or the same month last year. The most basic formula is current sales minus prior period sales divided by current sales. For example, a retail business with $100,000 USD in the current month and $85,000 in the same month last year has sales growth of 15%. Many retail businesses will keep trend analysis readily available with multi-month sales growth statistics, allowing them to determine when they can expect increases or decreases in sales.
Companies often calculate a percentage of gross profit for all individual products or lines. Owners and managers will do this by subtracting the product’s costs from the selling price and dividing the amount by the selling price. The retail stats method is also similar to calculate the gross profit percentage for the entire month. Total sales minus cost of goods sold divided by sales will calculate the gross profit percentage for the current period.
Returns and discounts represent merchandise returned by customers to the retail store. When customers return merchandise, the number goes against the company’s sales number for the month. If the company fails to sell the good at full price to another customer, the product is essentially worthless and often results in a loss of money. Retail statistics using this metric are pretty basic; the company will divide the total return and provision for the current period by the sales. This gives a percentage of all sales that the company expects to be returned by customers.
Employee turnover is another statistic that is more important to managers than external users. High turnover represents a work environment considered unfavorable by workers, and often costs the company money, as it will need to place job advertisements, interview employees, and conduct job tests for multiple individuals. Training new employees is often much more expensive than retaining current employees. This statistic is important because retail businesses often don’t have enough gross profits to continually replace employees.
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