Archive for August, 2015

Take the Retail Math Quiz

Do you know all about GMROII, GMROF, GMROL, Fixture Profitabililty, Inventory Turns and more?
Test Your Knowledge – Retail Math Quiz
Even if you know all about the GM’s…why not take a refresher? Have some fun!
Okay, here goes….

Test Your Knowledge – Retail Math Quiz

1.) What are the 6 Pillars of Retail?

2.) A product’s retail price is $79.95 and it costs $42.00. What is the Gross Margin of this product?

3.) What is the Mark-up for the same product?

4.) A store’s annual sales are $3,560,250. Monthly inventory is as follows:

Month

BOM

EOM

January 1,455,764 1,210,357
February 1,210,357 1,050,894
March 1,050,894 975,620
April 975,620 1,125,735
May 1,125,735 1,024,563
June 1,024,563 967,446
July 967,446 896,278
August 896,278 1,383,369
September 1,383,369 1,432,911
October 1,432,911 1,791,876
November 1,791,876 2,687,987
December 2,687,987 1,375,218

Based on these numbers, calculate the inventory turns for the year.
Hint: Calculate Average Inventory first.

5.) Utilizing the already calculated Gross Margin, Sales and Average Inventory, find out what the GMROII would be for this store, for the same year.

6.) We want to utilize GMROF to compare two display fixtures of different design:

Fixture 1: Oval shape with merchandised area of 7.65 square feet. Sales generated from this fixture in one month are $3,465 and Gross Margin on those sales is 43.5%.

Fixture 2: Rectangular shape with merchandised area of 7.20 square feet. Sales generated from this fixture in one month are $2,987 and Gross Margin on those sales is 45.6%.

Which fixture is more profitable?

7.) We want to compare the contribution of staff between two stores. Here is the data we have:

Store Sales This Month Gross Margin Total Payroll
1 $270,500 44.7% $44,895
2 $343,750 42.5% $55,280

Which store’s staff is contributing more?

8.) Here is some store data collected through POS and Traffic Counters:

# of people who entered the store – 1,362
# of sales tickets generated – 398
Total number of units sold – 724
Total payroll for the same period – $3,842
Total sales generated – $34,548

Calculate the following:

1. Conversion Rate
2. Average Sales per Transaction
3. Units per Transaction
4. Wage Cost

9.) Here is the overall company data for the 3rd quarter sales:

Month Sales Last Year % Achieved Target % Achieved
July $2,074 $1,926 $2,022
August $1,866 $1,792 $1,882
September $2,672 $2,503 $2,628
Total Q3 $6,612 $6,221 $6,532

Calculate this year’s performance compared to Last Year and compared to Target for each month and for the 3rd Quarter.

That’s it. How did you do?

Scroll all the way down when you go here to see the answers.

We hope you enjoyed today’s challenge.

You and Retail Management Resources

“The best way to predict the future is to create it.” Peter Drucker

Create It Using Exceptional Resources!

You’ll likely agree that there are resources, in this world, that we really wouldn’t want to do without.

A dictionary, for example.

Imagine how frustrating it would be to hear a word that you didn’t recognize which, possibly renders a whole sentence or paragraph unintelligible to you, and not have a way to get the definition and understand the word and context.

How would you proceed? How would you take action if it was required of you?

You may find you could not do it.

We have to understand if we are to act appropriately.

Another well used resource is a medical text. Doctors have to learn as much as possible about the human body and how it works; about symptoms of every disease, condition, therapy, etc. They must have a reliable resource to consult when necessary.

How would the Doctor ever graduate from Medical School without using all of the resource materials at his disposal?

Accountants and Legal Professionals all consult volumes of texts and reports and case studies in order to gain their degrees and go on to do their jobs properly.

Skilled Tradespeople learn through books, apprenticeship programs and other resource materials in order to become licensed in their field.

Every profession needs resources available to them for study, and for future reference, regardless of what stage they are at.

Retail Managers are no different.

Trying to function well in their positions without resources is bound to be frustrating and not terribly productive.

Colleagues and Superiors are certainly excellent resources but they do not stay put and cannot be relied upon absolutely every time they may be needed. They have their jobs to do, too so as much as they may want to help….they just can’t always be there.

Perhaps you didn’t need any additional resources when you started out. You knew everything and did everything your way, right or wrong.

But, when you are in growth mode, you definitely need more sophisticated help.

Growth requires that certain systems, processes and procedures are in place and working well.

We’re not talking about red-tape and bureaucratic hold ups. There is no room for any of that in a fast moving, successful retail operation.

We’re talking about the disciplines, the principles, the consistency, the fairness and reward systems. We’re talking about performance management that works instead of fly-by-the-seat-of-the-pants coaching and employee evaluations.

What resources will you provide to the people working in the stores, the districts, the Head Office?

How will they function at the top of their game?

And, your high performing individuals will need reliable resources to help them get the knowledge and skills they need to move them to the next level in the organization.

A super Sales Associate will need help and training to move to Department Supervisor, or whatever that next level is in your organization.

An Assistant Manager will need resources to learn from so that s/he can take the helm of a store.

You won’t be able to avoid the pitfalls of growth without the required preparation. And, for that, you need to get hold of serious retail management resources.

Increase your chances for positive outcomes…

Become a member of the Retail Business Academy. Below, we spell out the products, services, systems and advice you get access to for just $97/month.

You have access 24/7…at your leisure.

And, of course, you can cancel your membership in the Retail Business Academy at any time.

For those of you who want to share information and offer the very best chance of growth and development to your people, get them their own membership in the Retail Business Academy.

Volume Discounts on Memberships

Invest in their future to give them the skills to invest in yours. We offer volume discounts on our memberships so it’s easy and painless to upgrade the skills and capabilities of your entire workforce.

First, let us tell you that absolutely everything that DMSRetail offers for sale, is included in the Retail Business Academy.

Plus, there are many more products included that are not available for sale anywhere.

And, we’re growing it every day making your Platinum Membership more and more valuable. We’re working day and night to get new stuff uploaded for you.

This membership will offer new and different things to you all the time.

You’re going to have access to a wealth of different things, such as…

  • Success Guides
  • Tools
  • Study Courses
  • Performance Solutions
  • Information
  • Tips
  • Advice
  • World Retail News
  • Gems
  • How-To’s
  • DVD’s
  • PowerPoint Presentations
  • Pearls of Wisdom
  • Forms
  • Checklists
  • Videos
  • Consultants
  • Instructors
  • Motivational Quotes
  • and other seriously good stuff

Special Platinum Membership Benefits

Discounts on Workshop Attendance

  • The Retail Operations Management Workshop
  • Retail Category Management Workshop
  • Retail District Management Workshop
  • Retail Math, Metrics & KPI’s Workshop
  • Store Management for Maximum Success Workshop
  • Retail Design & Visual Merchandising Workshop
  • Retail Marketing & Brand Management Workshop
  • Cashier Etiquette & Performance Workshop

Access to Consultants and Instructors at DMSRetail via email

Scheduled telephone conversations with DMSRetail Consultants and Instructors

All of this is being brought to you by DMSRetail – a company that has been in business since 1991; on the web since 2003.

So, check out this link to the Retail Business Academy. You won’t regret having your own Platinum Membership.

It’s the best $97/month investment you’ll ever make. If you’re in retail, you really have to have this.

All the Success!

Director

Retail Business Academy, Membership

DMSRetail

PS: We sincerely look forward to counting you as one of our Retail Business Academy members. Join now.


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