Here’s a business review I did recently for a newsagency with quite a unique mix of customers:
Thanks for providing your July through september 2013 and 2012 dat for a business performance comparison.
You have quite a unique business. It’s hard to call it a newsagency with 44.42% of your revenue coming from card sales and gifts delivering another 9.82%.
The analysis is somewhat challenging because you have used supplier names for categories. You don;t need to do this as your software tracks sales by supplier automatically for you. I’d use categories for something more meaningful. For example, in gifts,categorise them either by style or gender/age group. This will make the reports more useful for you.
Given the more narrow focus of your business compared to the traditional newsagency I’ll contain my comments to those areas where you focus the most.
Gifts. One supplier accounts for 27% of your sales and while this is good for themI do wonder if you could broaden your range further, Your excellent card sales volume can guide the areas into which you expand. For example, kids gifts and plush. You should be able to grow your gift sales by at least 33%. In fact, I’d set that asa business goal. Look carefully at card sales to guide your gift buying.
Cards. I can see you’re in transition here,moving from one supplier to another.Keep on top of your data. Run the category performance report to get intricate detail about the cards working and those not. With cards at 44.42% of your sales you need to ensure you always have the best range out on the shop floor and the department well managed. To achieve this everyone working in your shop needs to be able to put new product out and to pull tickets for orders.This alone will help you grow sales.
Toys. Your toy sales are good enough to move them out of the gift department and into their own. This will focus your attention.
Plush. I can’t see any significant activity. Based on your card sales you should be able to do at least $25,000 a year in plush. Focus on fun everyday, no more than three suppliers.
Confectionery. Sales are below $50 a week. I’d consider getting out of this and using the space for funky impulse purchase items. Better margin and hopefully faster selling.
Tobacco. Your selling $300 worth a week. If your stock holding is more than $2,000 you;re losing money.
Magazines. Wow. $215 a week in sales. The only benefit I can see is as a convenience offer. That said, your sales help understand your shopper.I can see that 81% of the magazines you sell are female related titles.
Reading your reports I found myself asking what is this business. You are so strong with cards and gifts yet you dabble in some traditional newsagency / convenience lines. That made me wonder if you’re doing this to the detriment of the business. Would you be better off focussing more on cards, gifts, plush and toys with magazines and papers your nod to being a newsagency.
Your shop needs to be very female-friendly, carrying products for them personally and products they will buy for others.
If it were my business and based on the data I have seen I’d probably pull back on some categories and turn this into more of a destination for cards and gifts. I’d want to be known in the busy suburban shopping precinct where you are located for several product categories. I’d range products to be the go to retailer for these selected categories. Your magazine and card sales can help you work out the products you could become the destination retailer of.
I hope this helps. Let me know if you would like supplier specific suggestions.