Posts Tagged 'retail math seminar'

Amazon is rumored to be opening 300-400 Brick & Mortar Book Stores!

Go Figure…

While at that check out our most recent press release here: Retail Math & Analytics Workshop

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.

Retail Math Workshop in London UK

Good news…there is still time to register for this one day workshop – Retail Math, Metrics & KPI’s – being held in London, UK on July 13, 2012. If you already know all about this workshop and want to register, here’s the link: http://www.dmsretail.com/retailmathworkshop.htm

The Retail Math, Metrics & KPI’s Workshop is designed to inform retail professionals about Retail Metrics, their calculations and their importance in daily retail operations. Key Performance Indicatorsthat are essential for measurement of retail operational success are covered in detail.

In addition, this program contains a practical, hand’s on segment about the very important management tool – Balanced Score Cards as they apply to Retail Management at all levels.

The instructor, for this workshop, is Matt Parmaks, world renowned retail operations management expert. Mr. Parmaks holds a MSc. from the University of Birmingham, UK. He has many years of highly successful experience in retail – from the sales floor to the executive floor – and also has a background in retail analytics and business intelligence. This is a great opportunity to learn about retail math, metrics & KPI’s from an expert.

You can register here: http://www.dmsretail.com/retailmathworkshop.htm

Or, read on for: the Agenda, What You’ll Learn, Who Should Attend and Registration Fees.

Agenda:

6 Pillars of Retail and how to optimize them for maximum sales and profitability

Definition and explanation of terminology used in Retail Math

Break

Key Performance Indicators (What to measure, how to measure and how to interpret the results)

Lunch

Commonly Used Formulas, including the 3 most powerful Gross Margin Return calculations

Open-to-Buy

Sell-Thru Scenarios

Break

Store Operating Statement (P&L Statement)

Balanced Scorecards and Their Implementation in Retail Management

Q&A

What You’ll Learn:

Why the success of your retail operation depends on your ability to determine, and accurately measure, your Key Performance Indicators. Measurement of important metrics and determining the key performance indicators is one of the most important activities for a retail manager at store/district/region/company level. Failure to identify your most important metrics can be fatal to your business.

Retail Math, Metrics and KPI terminology and definitions.

Commonly used formulas. Also, how, and why you should be using GMROII, GMROF and GMROL.

What to measure, how to measure and how to interpret the results. Once you determine what and how to measure, you have to know how to correctly interpret the results. This is where many retail businesses go wrong…incorrect interpretation of their results, which leads them down the wrong path.

What action to take based on the results.
Knowing what to do with your results is key to making continuous improvement. Don’t be mislead. Learn how to drill down and come up with the winning answers so you can be certain that what you’re measuring is going to lead you to higher success in your retail operation.

Overview and examples of Open to Buy, Sell-thru and Store Operating Statements.

How to create and implement Balanced Score Cards at any level in your retail operation. Balanced Score Cards are used to summarize your most important KPI’s on one page – right at your fingertips – while considering all angles of your retail operation: Financial, Customer, Processes and Growth & Development.

The key, here, is that you choose the KPI’s that will be reflected on the Balanced Score Cards for your particular business…it’s definitely not one size fits all…your KPI’s have to be specifically tailored to your business. And, we show you how to do that.

The use of Balanced Score Cards gives your operations people a solid, easy to use platform for managing the business, through performance manage ment and accountability. It all comes down to one very important number.

Who Should Attend:

Anyone who has responsibility to drive sales and profits, including Store/District and Regional Managers as well as appropriate Head Office Staff. Supplier/Vendor staff who deal directly with retailers will benefit from this workshop as well.

Duration: 1-Day (9am-5pm)

Registration Fee: $495 per person; $425 per person when registering a group of 3 or more

Fee includes lunch, refreshments and all workshop materials. At the end of the workshop, you’ll receive a Certificate of Achievement and our top selling Retail Math Presentation on DVD.

You can register individuals, or groups of three, here: http://www.dmsretail.com/retailmathworkshop.htm

If you have questions, or if you have a very large group, please email: training@dmsretail.com , or call +1 (312) 239-0919 . Time is of the e ssence so please contact us now.

All the Success!
DMSRetail

PS: Space is available on a first come, first served basis. Don’t delay…register today. Here’s that link again: http://www.dmsretail.com/retailmathworkshop.htm


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