FINANCIAL BENCHMARKING RETAIL ER

Transcription

1 FINANCIAL BENCHMARKING November 2013 RETAIL ER

2 Retailer November 2013 Table of Contents YTY Sales Comparison 2 Most Important Business Problem 2 Sales Projections 3 Distribution of Sales/Markets Served 4 Sales Per Employee 5 Quick Ratio 5 Gross Margin 5 Inventory Turns 5 Operational Overhead 5 Customer Returns 5 Advertising & Marketing Expense 5 Shipping Expense 5 Glossary 5 Methodology 6 1

3 Year-To-Year Sales Comparison The graph below shows the percentage of companies that report their YTD sales through November 2013 as Up, Flat or Down when compared to YTD sales through November Retail Month to Month Sales Comparison November 2013 vs November % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 56.4% 30.8% 12.8% Up Flat Down Most Important Business Problem Participants were asked to select the most important problem facing them today. NOVEMBER 2013 Percentage Economy 24% Competition from the Internet 17% Quality of Labor 14% Government Requirements & Red Tape 10% Competition from Large Businesses 10% Cost of Labor 10% Taxes 7% Competition from Overseas 3% Poor Sales 3% Total 100% 2

4 SALES OUTLOOK - All Retailers January, February, March % 62.8% 30.2% Up Flat Down Three-month sales outlook for retailers compared to one year ago. Average increase of up responses: 17.3% Average decrease of down responses: 15.0% SALES OUTLOOK - Small Retailers January, February, March % 34.6% 61.5% Up Flat Down SALES OUTLOOK - Medium Retailers January, February, March % 54.4% 27.3% Up Flat Down SALES OUTLOOK Large Retailers January, February, March 2013 Data Not Available 3

5 DISTRIBUTION OF SALES BY OUTLET & SERVICE NOVEMBER 2013 Size of Business Types of Businesses Small Medium Large Auto Dealerships 2.8% 3.1% 8.6% Collision Repair/Body Shops 6.0% 15.1% 4.8% Wholesale/Distributor 3.0% 8.6% 7.8% Fleet 4.7% 2.8% 6.6% Installer (Parts & Accessories) 6.1% 4.4% 3.1% Internet Website - store site 12.9% 12.7% 29.7% Internet Website - ebay type store 4.4% 8.7% 7.4% Mail Order/Catalog 1.5% 4.2% 3.0% OEM 2.0% 0.2% 1.1% Race Teams/Engine Shops 7.0% 1.5% 0.2% Repair/Service providers 31.0% 15.2% 10.0% Retail Store 7.2% 14.7% 11.4% Tire Retailer 5.5% 8.4% 4.3% Other 6.0% 0.3% 2.0% Total: 100% 100% 100% Source: SEMA Industry Benchmarking Program, three month rolling average. MARKET SEGMENTS RETAILERS SELL TO NOVEMBER 2013 General Automotive Repair 39.5% Street High Performance 39.5% Exterior Accessories 31.6% Hot Rod/Street Rod 31.6% Interior Accessories 28.9% Car Care Products 26.3% Restyling 23.7% Wheels & Tires 23.7% Racing/Engine Shops 23.7% Off-Road 21.1% Truck & SUV 18.4% Mobile Electronics 15.8% Restoration 15.8% Auto Dealerships 15.8% Fleet 13.2% Motorcycle/Powersports 7.9% Collision Repair/Body Shops 7.9% Tools & Equipment 7.9% Other 5.3% *Equals more than 100% because multiple responses possible. 4

6 ESTIMATED ANNUALIZED SALES PER EMPLOYEE*: Small (up to $1 million) $109,683 Medium ($1 million to $10 million) $201,372 Large ($10 million+) $299,266 QUICK RATIO*: Small (up to $1 million) 3.4 Medium ($1 to $10 million) 2.1 Large ($10 million+) 1.1 GROSS MARGIN*: Small (up to $1 million) 26.6% Medium ($1 to $10 million) 29.5% Large ($10 million+) 34.5% INVENTORY TURNS*: 5.4 times OPERATIONAL OVERHEAD*: 15.8% of gross sales CUSTOMER RETURNS*: 6.4% of gross sales ADVERTISING AND MARKETING EXPENSE*: 3.6% of gross sales SHIPPING COSTS*: 3.6% of gross sales *Based on three month rolling average of all responses Glossary of Terms: Calculation of Key Financial Ratios and Explanation of Headings Quick Ratio = Cash + Accounts Measures the degree of solvency, or the Receivable divided by Liabilities ability to meet current debts, using mostly liquid assets. Annualized Sales Per Employee = Gross Sales x 12 divided by the number of employees. Gross Margin Percentage = Gross Profits divided by Net Sales Three-Month Rolling Average = data from the current month plus two prior months divided by 3. Size of Company = Qualified as: Small - $1million or less in annual sales Medium - $1 to $10 million in sales Large - $10 million + in sales Average Percentage Increase/ Decrease = sum of all the percentages divided by the number of responses for each. Used as an indicator of employee productivity as well as to measure whether a company is generating adequate sales in relation to its assets and employees. Measures the percentage of sales dollars left after cost to buy the merchandise is subtracted. Provides more data points for calculation and reduce fluctuations to show trends in the data. Provides data relevant to the size of the business. Based on a comparison of sales from the same months from the previous year. 5

7 Sales Outlook = Sum of all the responses for Up, Down, Flat divided by the total number of responses received. Distribution of Sales by Outlet and Service = the percentage of sales for the month by type of outlet sold through or the service provided. Market Segments Retailers Sell to = all the markets the business sells product or provides services for. Operational Overhead = Entered as a percentage of gross sales for the month. Inventory Turns = Number of times the inventory has been sold in the past 12 months. Average Percentage Customer Returns= Percentage of the month s gross sales that were returned. Advertising and Marketing Expense = Percentage of month s gross sales spending on advertising and marketing. Shipping Costs = Percentage of gross sales attributed to shipping expense. Year to Date Sales = Percentage of all the Up/Down/Flat responses for the years indicated. Provides industry sales projections for the coming three-month period. Provides sales information by type of retailer or service. Can be used to evaluate sales levels or new opportunities for sales growth. Identifies the markets retailers are selling to and allows for tracking of changes in the market. Also helps identify possible new markets to enter. Measures the percentage of sales that cover recurring operating expenses necessary to maintain the existence of the business. Includes items such as rent, utilities, etc. Measure how frequently a business is turning over or completely selling through its inventory. Slow inventory turns can sometimes be attributed to weak sales. Provides a basis for measurement of several areas including proper sales training, product quality and fraud. Provides data on how much is spent to promote and market the business. Measures the amount each month being spent on shipping products and parts. Measure cumulative year-to-date sales levels through the month against the previous year. Companies report whether their sales are up/flat/down compared to the same time last year. SUMMARY/METHODOLOGY Data in this report is based on responses from the SEMA Financial Benchmarking Program questionnaire for November Data presented as a three-month rolling average includes responses from September and October questionnaires. Data was tabulated and tracked from 248 questionnaires. Margin of error +/-6.2% at a 95% confidence level. Thank you for participating in the SEMA-sponsored SEMA Financial Benchmarking Program. Data is tabulated and tracked in aggregate. Responses are not shared with SEMA. If you have any questions or suggestions please feel free to contact: Julie Hedges Hedges & Company (234) Julie@HedgesCompany.com 6