Home / Knowledge / News / Apparel/Garments / Revenue per store matters, outlet numbers doesn't!

Revenue per store matters, outlet numbers doesn't!

25
Aug '08
Size does matter, but having more numbers of stores does not necessarily translate in to higher revenues for retailers. The bottom line is to have high income levels for each and every individual store in the chain, because this is what will ultimately transform in to better sales and high profits for the retailers.

Fibre2fashion has compiled and researched data from the recently released listings of the top 100 retailers from across all verticals in the US done by Alliance Data on the basis of sales growth achieved in 2007 vis-à-vis 2006. We have tried to compare per store yields of apparel retailers and have come to some startling conclusions from this data.

The iconic high end retailer from New York, Saks topped the rankings as well as took the cake with the highest number of earnings per store. In 2006, Saks had a mere 180 stores from which it was able to generate sales of US $2.94 billion which in turn delivered a stupendous yield of $16.33 million per store.

In 2007 store count grew to 197 stores and sales to $3.28 billion which ultimately converted in to a earning per store of $16.66 million.

In comparison, in case of Bed Bath & Beyond, second in the ranking, each outlet could muster only 50 percent of the proceeds generated by a store of Saks. With a turnover of $6.61 billion from 816 stores, each outlet could realize proceedings of only $8.10 million per store in 2006.

In contrast, sales and number of outlets grew to $7.04 billion and 971 respectively in 2007 but, average returns per store fell to $7.2 million depicting a negative growth of 11.11 percent when evaluated with figures of 2006.

Other retailers in the rankings could deliver average or even below average takings per store when corresponded with figures of an outlet of Saks. Among the first five, income for an outlet for TJX averaged $7.0 million and $7.2 million, Ross stores $6.9 million and $7.1 million while Urban Outfitters could not garner a growth and it's per store income stayed stagnant at $6.15 million in 2006 and 2007 respectively.

In contrast, Collective Brands which is last in the ranking could deliver a per store yield of only $611,700 and $620,200 with a store count of 4,572 and 4,894 in 2006 and 2007 respectively. When evaluated with Collective Brands, the number of outlets owned by Saks is a mere 4 percent to that of Collective Brands, but in comparison, sales turnover per store of Collective brands is just 3.79 percent to that of Saks

The contrast in group sales turnover is also notable. On the strength of its high number of stores, Collective brands could boast of an income of $2.79 billion and $3.03 billion only in 2006 and 2007 respectively, the figures which again do not match up to those delivered by Saks.

A general feeling could arise among our readers of the comparison made of an iconic fashion brand and a next door apparels retailer. Our objective was to only bring fortha point that a high number of stores necessarily may not translate in to over all high revenues.


Must ReadView All

Pic: Shutterstock

Textiles | On 27th Feb 2020

Australia willing to consider FTA with India on RCEP lines

Australia is willing to consider a bilateral free trade agreement...

Pic: Shutterstock

Apparel/Garments | On 27th Feb 2020

Hun Sen asks PRC garment investors not to leave Cambodia

Prime Minister Hun Sen recently again told Chinese garment sector...

Pic: B.Zhou / Shutterstock.com

Retail | On 27th Feb 2020

Retail brands restrict China operations amid COVID-19

The outbreak of COVID-19 is disrupting business dynamics in China....

Interviews View All

Amardeep Singh, Orient Craft

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Awen Delaval, Samatoa

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Spokesperson, Hugo Boss

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Ian Burn,

Ian Burn

Camira's expertise goes from farm to fabric and everything in between. The ...

Erwin Devloo,

Erwin Devloo

Picanol develops, produces and markets high-tech weaving machines, based...

Harssh Chheda,

Harssh Chheda

Mumbai-based Corporate Collars provides bespoke tailoring services for...

Marten Alkhagen, Swerea IVF AB

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mohammad Hassan, Biax Fiberfilm

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Ray Baughman, University of Texas -Dallas

Ray Baughman
University of Texas -Dallas

<div>A team of scientists and researchers have discovered twistrons,...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

Sneha Arora, Label Sneha Arora

Sneha Arora
Label Sneha Arora

Sneha Arora, an alumnus of National Institute of Fashion Technology,...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search