Let’s do the numbers!
It is easy to be enamored by the idea of having your own business and calling the shots . Having “checkbook power” is ego boosting and gives you prestige amongst the vendor community. An important part of navigating the retail world is understanding the core fundamentals of your venture. Internal controls through reporting such as profit & loss, breakeven analysis, cash flow and OTB (open to buy) are vital in ensuring the longevity of your operation. As a business owner, you (or someone you hire ** wink wink) need to fully understand, manage and reference these reports daily. Think of them as your progress report(s).
EMP Retail consulting is able to conduct a financial retail check up for your business with the accumulated data along with additional individualize reporting. Below is a comprehensive list of our retail financial services.
• Break-even analysis financial report
• Profit & Loss financial report
• Cash flow financial report
• OTB planning and training
• Best & worst sellers report
• Gross margin training
• Strategy for departments and classifications
• Vendor analysis & suggestions
• Retail jargon and formula review
• Buyer training
Markdown Rate (%)
Markdowns/Sales x 100
TY-LY / LY x 100 or TY- Plan / Plan x 100
TY / LY x 100 or TY / Plan x 100
Penetration/ % to TTL
Segment/Total x 100
Total Sales/Average Stock
Retail - Cost / Retail x 100