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)

The Master Sheet: Customer Value

Here's the Master Sheet we've evaluated for more than a week. Today we'll look at the portion of the table on the far right, col...

  • 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...
  • A Pricing Cycle
    Here's a common dynamic in my projects ... see if this happens at your company. Your average price point is $40.00. Customer response...
  • Welcome Program
    I always face a challenge from marketers when I talk about implementing a Welcome Program. When I tell marketers that a Welcome Program gene...