Get 100% of The ROI! Unlimited Access SUBSCRIBE Now!
Just in; published last month. The best financial data available! Annual Statement Studies from Risk Management Association for all NAICS industries.
The ROI’s Key Retail Benchmarks Charts are one of the most-used resources of The ROI. And for good reasons!
Presented visually, these compelling five year trend charts reveal how stores in each retail vertical are trending on key financial indicators: profitability; inventory productivity; financial strength.
The prospect of tariffs from 10% to 60% being imposed on goods from Canada, Mexico, China, and other countries by the incoming Trump Administration is certainly contributing to headlines and attention. Another flexibility test for retailers.
Some retailers have seized on the uncertainty that has resulted. They are using the fear of tariff costs leading to higher retail prices to heighten the shoppers' sense of urgency.
Well, actually, Christmas will be here the same time it always is: December 25.
However, what does change are the cues for the shoppers.
That is, Thanksgiving falls as late as it can this year, on November 28. That means, for those keeping score at home and for the breathless business pundits, there are only 26 shopping days between Thanksgiving and Christmas. This is six days shorter than a year ago, and the shortest since 2019.
That's why some retailers, especially those that are publicly traded, are making mighty efforts to lengthen the shopping season.
But, is there actual value in trying to prompt shoppers to start their Christmas shopping before they have even handed out Halloween candy? Yes, but...
Some retailers in this situation essentially freak out. But the pros, like you, know to keep asking questions. Before they decide what to do next to fix lagging sales, they want to know "Why?"
So, rather than guess the answer, here is a way to get to the numbers behind the numbers; to begin to know the "why" of your sales trends, whether they’re falling or rising.
All it takes is tapping into the data that's already in your POS system, and putting together a little summary tally sheet. The point is to get some key data together in one place so you can easily, quickly, and for free, compare and analyze your results.
This shows the average annual pre-tax income (in 2022) and average expenditures, for US total, and by generation.
And this chart shows total US population by generation, by age in 2022.
Granted, everyone in retailing who looks at these two charts from the Collage Group* will conclude something different. Didn’t you?!
A couple weeks ago, we received another very insightful email from a long time professional friend. Because of his unique perspective on retailing, we’re sharing a portion of his note.
First, you must understand that our friend had owned one of the finest specialty stores in the Midwest for years. Then, for the last ten years, he chose to work in sales for a prominent national retailer. He’s probably forgotten more about the nuances of retailing excellence than any of us even know.
We think you’ll agree with our friend. And probably recognize your own experiences.
“Yes, lots of challenges for xxxx and pretty much any retailer these days. They are wrestling with some legacy issues as well as societal issues like Millennials’ and Gen Z's general distrust of institutional authority and unhappiness with the hand they've been dealt.”
Maybe you've also noticed it. The recent articles about how retailers now have their inventories "more in line" after the glut of excess inventory caused by "supply chain disruption." Okay. That's good news. But, what jumps out at us is the frequent reference to "just-in-time" inventory management.
Look, if you can't measure it, you can't manage it. And, if you can't manage something, by definition (and experience!) it is out of control.
As we look out at the second half of 2023, we're actually quite optimistic for independent retailers worldwide. No, really! The statistics haven't yet borne out what we are "seeing," but just wait a bit. To begin our justification, let's look at the really Big Picture. Generally, the Covid pandemic has been wrestled down. Likewise, inflationary prices seem to no longer be a threat. The worrisome political scene has resumed its traditional state of boredom, and the major concern now is something we can't do much about: each day's weather. So, looking at the Big Picture, we see the general population for the second half of the year to be quite serene, even optimistic. And that bodes very well for shoppers' confidence!
Incredible value! 👀
Start NOW!