Hardware Retailing

DEC 2017

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://hardwareretailing.epubxp.com/i/904225

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Page 35 of 70

December 2017 | HARDWARE RETAILING 31 31 December 2017 | HARDWARE RETAILING Source: 2017 Cost of Doing Business Study Hardware Stores Home Centers Lumberyards 40.3% Total operating expenses were up slightly due to increases in total payroll and occupancy expenses. 27.9% Total operating expenses for typical stores dropped for the fifth consecutive year. 19.8% Total operating expenses went down 6.7 percentage points as lumberyards worked toward running leaner operations. Total Operating Expense $188 Hardware stores averaged $51 in product per square foot, resulting in $188 in sales per square foot. $607 Sales per square foot doubled year over year for typical stores, likely due to the unusually high number of multistore respondents. $712 Sales per square foot increased from the prior year, with $129 in inventory stocked for every square foot of selling space. Sales Per Square Feet $176,657 The average number of employees per typical store increased from 10 to 11, and sales per employee hit an all-time high of $176,657. $84,303 Gross margin per employee increased from the prior year. Plus, employee counts went up from 16 to 22. $92,138 Gross margin per employee went down more than $4,000 from the year prior, though staff counts increased by one person. Sales Per Employee 4.2% Highest profit margin reported since the study began, driven by the highest average transaction size: $22. 2.7% Home center profit margin dipped, decreasing by 1.4 percentage points from 2016's all-time high of 4.1 percent. 4.2% Profit margin increased 0.5 percentage points above 2016 to 4.2 percent. Average transaction size hit $199 for typical stores. Profit Margin

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