Hardware Retailing

DEC 2018

Hardware Retailing magazine is the pre-eminent how-to management magazine for small business owners and managers in the home improvement retailing industry.

Issue link: http://www.hardwareretailingarchive.com/i/1056221

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Page 35 of 78

December 2018 | HARDWARE RETAILING 31 31 December 2018 | HARDWARE RETAILING Source: 2018 Cost of Doing Business Study Hardware Stores Home Centers Lumberyards 38.4% Total operating expenses dropped some, potentially reflecting a slight decrease in payroll costs, occupancy and other operating costs. 29.8% Total operating expenses at typical stores grew year over year, rising from 27.9% to 29.8%. 18.9% Total operating expenses at typical lumberyards decreased from 19.8% to 18.9%. $193 Sales per square foot hit an all-time high, reflecting high inventory turnover in the independent home improvement sector. $299 Sales per square foot fell, likely because 2017's study had an unusually high number of large home center participants. $872 At typical lumberyards, sales per square foot increased $120, representing an all-time high metric for this group. $174,357 Sales per employee at typical stores decreased about 1 percent year over year. $260,489 Sales per employee decreased by about $8,000 compared to the prior year at high-profit home centers. $327,138 Sales per employee fell by nearly $60,000 from the year prior. Average staff counts increased from 15 to 18 people. 3.6% Despite sales per customer staying even at $22 from the prior year, profit margin dipped from 4.2% to 3.6%. 3.1% Profit margin increased at typical home centers, up from 2.7 percent in the prior fiscal year. 3.7% Typical lumberyards, on average, saw their profit margin drop from 4.2% to 3.7%. Total Operating Expense Sales Per Square Feet Sales Per Employee Profit Margin

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