Hardware Retailing The Industry's Source for Insights and Information
Benchmarking and measuring your store’s performance against industry averages are vital to keeping your store competitive and on a continuous growth track. One of the industry’s best tools for benchmarking is the North American Retail Hardware Association’s Cost of Doing Business Study.
This year was the 98th year NRHA conducted the study and more than 1,000 stores participated. The study is divided into three sections: hardware stores, home centers and lumberyards. The data comes from participating stores’ income statements and balance sheets and includes important performance ratios.
Below is data from the study comparing high-profit store performance to typical industry stores. These numbers show how well stores are turning inventory.
Applied to Retail: Use industry data to compare you operation against other stores across the country. Look at the numbers and analyze your inventory turnover and determine if you fall into the high-profit category, typical category or below. If you fall in the typical category or below, evaluate your cost of goods sold and what best practices you can implement to improve the number. Teach your employees what the data means and how they can help improve store performance.
If you would like to download or purchase the 2015 Cost of Doing Business Study, follow the instructions below.
NRHA members can access a PDF version of the study at no charge by logging into www.nrha.org and clicking “Cost of Doing Business” under the “NRHA Studies” tab. Want a hard copy? Visit the NRHA Store through the members-only portion of the website to make a purchase at a discounted rate. If you need your member login information, email NRHA member services or call 800-772-4424.
Not a member? Join the association or buy a hard copy of the study through NRHA’s online store.
Did you participate in this year’s study? You will receive a FREE copy of the study PDF in the mail along with a financial analysis toolkit. Would you like to participate in next year’s study to receive a free copy? If so, email Sara Logel at slogel@nrha.org.
