June 14, 2017

Gross Margin Comps

A business can handle negative top-line comps if gross margin dollars are increasing. Here's the comp segment table for our business.


Gross margin comps look better than top-line sales/demand comps look ... but the last five months demonstrate a 4% - 5% drop in gross margin comps. This business is struggling due to merchandising strategy changes (and marketing problems with new + reactivated buyers - problems independent of merchandising strategy changes).

You are running these simple diagnostics on your business, right?


-

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Subscribe to: Post Comments (Atom)

Why Does A Welcome Program Matter? Look At Months 1-2

Let's look at life table results from a recent project. This table is for customers who just purchased for the first time. Each row repr...

  • The MineThatData E-Mail Analytics And Data Mining Challenge
    It is time to find a few smart individuals in the world of e-mail analytics and data mining! And honestly, what follows is a dataset that y...
  • Creative
    On Twitter you find all sorts of odd and untested ideas. One follower told me that he outsources all of his creative imagery to his c...
  • Retail
    Yeah, that's a lousy picture. Too bad. Today is essay day. If you don't want to read something long, stop here. I spend a...