Numbers Shoot Straight

September 30, 2008  by in UnCategorized   

By Home Furnishings Business in on October 2008 It must have been in a long-ago economics or statistics college course when the long-standing “numbers don’t lie” phrase was uttered ad nauseam to my chemistry-minded ears.

At the time, I was all about chemical reactions, kinetics, afternoon labs and the periodical chart. I wasn’t into the numbers; I wanted to mix things and note the results.

All that soon shifted, but I’m still not jazzed by numbers as many of the mathematical whizzes out there are. Heck, there are days that I defer math homework assistance—thankfully, it’s not often needed—to the other grown-up in the house.

I do understand, however, as many a management guru likes to spout, that you are what you measure. Hence, this issue of Home Furnishings Business looks at store operations and making sense of the myriad of numbers that retailers can and should measure.

Often it may feel as if you need a dictionary to decipher the vocabulary used in financial statements. Some terms are easy enough—net sales, gross sales, cost of goods, gross margin. Others require a bit more brainpower for the average bear—gross margin percentage, operating margin percentage.

Retailers face a multitude of challenges to operating a profitable business. Continually rising costs, the tightening of the credit market for small businesses, and dwindling consumer confidence all take a toll on the bottom line.

It’s stressful enough figuring out how to keep the doors open; never mind the concerns of meeting payroll and making timely vendor payments.

Inside the pages of this month’s issue, you’ll find real stories from successful furniture retailers who share the metrics they track and other ways to stay on target in today’s less-than-stellar business climate.

Many participate in performance groups that provide the opportunity to share ideas, numbers and problems with retailers in non-competing markets. Others also turn to technology providers for the latest tracking software to stay on top of changes in pivotal operational numbers. Investing in smart technology often gives us an “a-ha moment” leaving us wondering what took us so long to get there.

Dig into the information inside, study it and learn from your peers. The fourth quarter is the perfect time to get your store finances and operations in order and on a sound foundation as you move toward 2009.

Remember, numbers don’t lie, and they provide a solid snapshot of what’s going on in a business.