Posts Tagged 'math for retailers'

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.

Holiday Tip #4 & Introducing Retail Math – Made Simple 3rd Edition

Our best selling Success Guide…Retail Math – Made Simple is now in its 3rd Edition!

We’ve added Vendor Scorecards, a fully explained Profit & Loss Statement and a Retail Math Quiz.

And the best part is…for now, the price stays the same at only $17.95 for the electronic version and $29.95 for the print version.

You can purchase it right here: http://www.dmsretail.com/retailmathbook.htm

We know that thousands of you already own Retail Math – Made Simple and we can just hear you saying “But, I already bought it!” Don’t worry, we won’t let you down. You get a free electronic upgrade.

If you are a Retail Math – Made Simple customer, just send an email to: training@dmsretail.com and ask us to send you the free upgrade.

Now, for that Holiday Tip #4 – What are your plans for keeping everyone sane this holiday season?

This is the time of year when many retail people might start to get a little testy. They are doing everything – and then some – and sometimes they just want to throw up their hands and leave!

Of course, they don’t really want to leave but they may get frustrated. Face it, life is pretty interesting…sometimes crazy… in retail stores in December. Start now and plan to make sure everyone has some fun.

Here are some things you can do to help:

  •       Arrange a pot luck lunch for the busiest days. Have everyone bring something to contribute, supply paper plates and cutlery and let everyone have a relaxing lunch in the backroom so they don’t have to fight the food court wars.
  •       Put a motivational note or card in their backroom mailbox just to remind them that someone appreciates their efforts.
  •       Bring treats for staff to munch on during their breaks.
  •       Run a contest where the winner gets to go home a little early without cleaning and closing up the store. If you run a contest like this every day, the other staff will happily pick up the slack because they know they could be the lucky winner the next day.
  •       And don’t forget the pat on the back for a job well done. Thank your people often and sincerely.

All the Success!

DMSRetail

PS: These two workshops will be held in Phoenix, Arizona in January 2012…after the madness, and just in time to get a jumpstart for the new year. You can use these links to get dates, fees, who should attend, what’s included, etc.

The Retail Operations Management G.O.L.D. Workshop:

http://www.dmsretail.com/retailtraining.htm

The Retail District Management G.O.L.D. Workshop
:
 http://www.dmsretail.com/districtworkshop.htm 

 


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