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Benchmarks

Key Retail Benchmarks

Whether you are a retailer, or you work with retailers, The Retail Owners Institute makes it easy for you to get a quick financial health assessment of any retail business. 

The ROI's Retail Benchmarks

From all the ratios available, The ROI has selected 6 Key Retail Ratios for retailers to regularly monitor and manage:

• Pre-Tax Profit

• Gross Margin

• Inventory Turnover

• Debt-to-Worth Ratio

• Current Ratio

• GMROI

Choose any one of the 55 retail segments listed on this page, and click the link. 


Once on that "Retail Segment" page, see Retail Benchmark Trend Charts for the past 5 years. Available only from The ROI.


For more info, see How to Use The ROI's Benchmark Numbers Like a Pro!


"How and when can these benchmark numbers be used?"

For perspective 

• Calculate these ratios for your own business, and then see how you compare to your retail industry segment.

For goal setting 

• Use these benchmarks when you are setting your own target ratios for the next year.

For preparation 

• Seeking a bank loan for your business? The bankers will look at these industry benchmarks as they assess your store's performance. 

For understanding 

• The credit departments of your vendors and landlords will examine your ratios to assess your credit worthiness.

For saving time 

• Use The ROI's Key RATIOS Calculator to quickly calculate your own ratios. 

 

Have questions?

Get answers at The ROI's Retail Benchmarks Resource Center. Free to everyone to use

See the how-to article: Go Figure! How to Calculate Your Key Ratios - in 12 Seconds Each!

Watch and listen to the recorded webinar: The Retail OWNER'S DASHBOARD

Very quickly, you can see how and why to monitor the true "vital signs" of your business. 

 




About the Retail Segments

The segments featured at The ROI reflect the definitions and designations of the North American Industrial Classification System (NAICS).

The top of each Retail Segment Page on The ROI site includes the NAICS code and the NAICS definition for that industry segment.
 

About the Key Retail Ratios

The ROI has selected six key ratios (from the abundance of ratios available) that are particularly important for retailers to regularly monitor and manage. See The ROI's Benchmarks Resource Center to learn more about these key ratios for retailers.

The ROI's exclusive Retail Benchmark Trend Charts show the median value reported by Risk Management Association's Annual Statement Studies for each of these key ratios each year.

Remember, there also is a Top Quartile – and Bottom Quartile – of results for every segment. See your local library for those details.

As you examine the trends in any retail segment, here are some pro tips for you.

An upward trend is usually a good sign - with one exception. That is the Debt-to-Worth ratio, where lower is financially stronger, as it indicates less debt.

There really are no right or wrong ratios. However, examining the trends over time can provide early warnings of potential trouble spots.

Connecting the dots of the cause-effect connections can be very revealing. For more on that, see How to Use The ROI's Benchmark Numbers Like a Pro

 

 

 



Reminders

  1. The segments featured at The ROI reflect the definitions and designations of the North American Industrial Classification System (NAICS). The top of each Retail Segment Page on The ROI site includes the NAICS code and the NAICS definition for that industry segment.

  2. The ROI's exclusive Retail Benchmark Trend Charts show the median value reported by Risk Management Association's Annual Statement Studies for each of these key ratios each year.

  3. Retailers may need to examine the benchmark numbers in more than one segment to get perspective on their own store's performance, particularly if their store does not exactly fit the NAICS category.

Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"