As part of The Group's Weekly Department Review (WDR) Program, along with the 52 weeks of WDR, there are two special WDRs compiled. One in July for the first six months (Mid-Year) and one in January for the entire year (Year-End). Steve and Bonnie Bailey have just finished the first six month report and returned it to the Centers participating. Following is Steve's overview of the results.
My job can't get any better than this...
You see, about the middle of June every year, I begin getting emails and calls, asking if we are going to compile a Mid-Year WDR like we have in the past. In this special mid-year edition of the Weekly Department Review, participating centers can compare their Revenue performance in relation to reporting centers of like size and region.
Thanks first to Robert and Wendy, and now Danny and Karen, the tradition continues. This year's Special Mid-Year 2016 report contained valuable data from seventy-two Group centers (74% of the Centers in the entire WDR) took the time to submit their numbers. In return, they received the most comprehensive
mid-year report in the garden center industry.
I mentioned the size and region comparison earlier, but it can go further than that by using the 'Copy and Paste' page to compare your Center to others not necessarily at your Revenue level. Simply copy and paste any Center's values into the five-center format. If you need assistance with which Centers might be a good comparison, give us a call. Now, let's take a look at the results:
First of all, good news!
57% of the Centers have increased in Revenues vs. 2015. Overall Year-to-Date Revenues are up 1.8%. While the amount of the increase is certainly not as robust as what everyone would like, it's certainly within the parameters of other retail industries in 2016.
Making up those Revenues were the core categories and their representative percentage of Sales - Annuals at 25%, Shrubs were 13%, Perennials 10%, Landscape Non-Plant 8%, Hardgoods 7%, Trees 6% and Herbs & Veggies 5%. Together these key categories totaled 74% of total Revenues. Without knowing Profit numbers at this point, these numbers are important due to the higher Margin associated with their performance. Higher Margins usually equal higher Profits.
The smaller Centers in the report tended to increase more in Revenues.
The Northeast region jumped up the most at 7.7%, a healthy gain vs. the rest of the regions.
Not surprisingly, the Northeast also had the highest Average Sale YTD at $76.70. Their Average Items per Transaction was one of the lowest at 5.4 per transaction, which means they were selling higher-ticket items in order to achieve the higher Average Sale.
Transaction Count overall remains flat at 0.6% growth YTD. The Northeast, Northwest/BC, New York/Ontario, and South saw the greatest growth in the 3.6%-3.8% range.
Once again, the smaller Centers saw the greatest increase in Transaction Count YTD.
I found it interesting that the Seasonal Group of Centers reported a 9.1% increase in Revenues. Average Sale increased by 1.9% and Transaction Count was up 7.2%. Great increases there that prove the mathematical relationship of those three key ratios - Transaction Count % + Average Sale % = Sales %. It's a great formula to use in planning for 2017.
The one Expense value measured in the WDR - Labor to Sales ratio - tends to jump from week to week or month to month due to highly variable Revenues. But in the Mid-Year WDR, it takes on more meaning. Overall, The Group came in at 21.1%, which is a great achievement if measured correctly. All of the Regional groups were in the low 20's with the Midwest dipping down to 19.5%. Revenue level did not appear to affect that ratio either, as all of them were in the low 20's as well.
Key to holding Profitability or decreasing a Loss is controlling Payroll the second half of the year. Make that one of your top priorities and reap the benefits when you measure your year-end performance.
Of course, there's much more revealing and important data contained in a report such as this. If your Center participated in the Special Mid-Year WDR, go back over the report a second time to insure you got the full load of information. If you need help interpreting the data or implementing change because of it, give me a call.
There you have it. The first six months of 2016 are behind us. At this point, it's important to note that an increase in Revenues during this period does not necessarily mean Profit is following suit. That will be determined at the end of this year by means of The Group Profit & Loss Study.
You won't want to miss reporting to that one as well. See you there!
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Got questions or need more information about profitability?
Give Steve a call or email!
Steve Bailey
Tel: 618.319.9205
Cell: 618.521.5225
Steve Bailey is a service provider for The Garden Center Group and manages all Group financial sharing programs. The Weekly Department Review (WDR) and The Annual P&L Study are exclusives to The Garden Center Group and are included in your retainer!
REMEMBER: Your interaction (by phone and email) with Group Service Providers such as Steve Bailey, Robert Hendrickson, Sid Raisch and Jean Seawright, are included in your retainer! So what are you waiting for? Take advantage of all that The Group has to offer and give them a call or send an email now!
