The analysis of retail turnover
Posted: Sun Dec 22, 2024 8:48 am
the retail trade, it is important to identify and analyze the causes that caused them. Therefore, the key aspects of the analysis are the identification and study of the factors that contribute to changes in product activity. The accounting factors that affect the volume of retail turnover are the number of employees in trade and their productivity. The impact of these factors is analyzed within the framework of the balance sheet model.
By representing the volume of trade turnover as the product of the number of jobs, hours of work and average annual productivity, the influence of each of them can be estimated using the chain substitution method.
by total volume and the fulfillment of the turnover plan is supplemented by a study of the structure of goods in this turnover.
The concept of the commodity structure of trade taiwan business email list turnover implies the distribution of various goods and services in the total volume of their sales, reflected by relative values: shares in the total volume and the coefficient of the ratio of goods.
In terms of marketing aspects, the composition of product sales reflects market segmentation, allows one to evaluate the effectiveness of diversification, and is also a key indicator of the company’s competitiveness.
100% is considered the turnover for the entire company; assessing the relative size of the structure requires dividing the turnover of each product group by the total turnover of the store and multiplying by 100%.
When analyzing the structure of the turnover, one problem arises - determining the sales volumes of individual products in the assortment. The lack of complete accounting and efficiency can prevent accurate tracking of the sales of individual products, which complicates the process.
If computerization of accounting is not an option, the enterprise should apply the method of selective accounting and use indirect data for analysis. One of the most popular methods is the balance method using a special formula that reflects the balance of inventory for a certain period:
Z i = Zn i + P i - dR i - Zk i
Where:
Зн i and Зк i are the initial and final stocks of the i -th product;
P i — receipt of this product for the specified period;
dR i — documented expense without direct sale (for example, transfer of goods to a company branch, charitable events);
Р i — expenses of the i -th product, which may not coincide with actual sales due to undocumented expenses (losses, theft, accounting errors).
Unreported costs can be identified by comparing the total amount of expenses with the turnover of goods (cash turnover).
After studying changes in the product structure, the causes of structural shifts are identified and, if necessary, the product range is adjusted. This allows avoiding losses associated with the storage of illiquid goods and accelerates the turnover of funds.
The effectiveness of achieving sales goals directly depends on the effectiveness of the tasks performed by individual stores on a daily basis. Therefore, control and analysis of retail sales and all its components play a key role.
Comparison of daily sales volume with the monthly average will allow us to assess the degree of regularity of sales of food products.
Following the analysis, recommendations are developed to increase sales volumes and optimize the use of product resources in the future.
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"How to increase the flow of customers by choosing the right method"
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Example of turnover analysis
How does the study of commodity turnover at an enterprise proceed in practice? For this, there is analysis and planning of commodity turnover. An example of analysis and conclusions will be considered below.
Example of turnover analysis
Source: shutterstock.com
Let's imagine a company called XXX, which specializes in the production of affordable office furniture. Each month it produces 200 computer desks, each priced at about 15,000 rubles, 1,000 chairs priced at 4,000 rubles, and 200 paper shelves at 5,000 rubles. Monthly sales include: 180 desks, 900 chairs, 180 shelves, total revenue is 7,200,000 rubles, taking into account the following calculations: 180 x 15,000 + 900 x 4,000 + 180 x 5,000 = 7,200,000.
The bulk of the products are sold through retail stores that are partners of the wholesale company. A small share of the products is sold by the XXX enterprise itself to various organizations and institutions, and this demand is unstable and difficult to predict.
The profitability level averages 648,000 rubles, which corresponds to approximately 30% of total sales.
The main task of XXX management is to increase furniture sales. This is necessary due to the underutilization of the enterprise's production capacities, which leads to the accumulation of some finished products in the warehouse.
It is impossible to fully sell the entire range of furniture produced by cooperating with a wholesale company. This conclusion is confirmed by the analysis of turnover over the past two years, which showed a stable level of sales through a partner wholesale company.
Taking into account the analytical findings, the management decided to sign contracts with dealers in various areas. Regular supply of products to representatives is planned, who will have to sell a pre-agreed volume of goods every month.
A wholesale partner company will have the opportunity to become an official representative in its area, which will provide it with privileged conditions in furniture supplies and deferred payment.
This move will bring XXX increase in profits, despite the delay in payment, the merit will be the full sale of the produced furniture and the reduction of its cost.
The latter is brought in by a certain amount of 7,200,000 rubles, of which 1,250,000 rubles will become profit. Further strategies for the company's development include increasing production capacity and expanding the range of goods.
By representing the volume of trade turnover as the product of the number of jobs, hours of work and average annual productivity, the influence of each of them can be estimated using the chain substitution method.
by total volume and the fulfillment of the turnover plan is supplemented by a study of the structure of goods in this turnover.
The concept of the commodity structure of trade taiwan business email list turnover implies the distribution of various goods and services in the total volume of their sales, reflected by relative values: shares in the total volume and the coefficient of the ratio of goods.
In terms of marketing aspects, the composition of product sales reflects market segmentation, allows one to evaluate the effectiveness of diversification, and is also a key indicator of the company’s competitiveness.
100% is considered the turnover for the entire company; assessing the relative size of the structure requires dividing the turnover of each product group by the total turnover of the store and multiplying by 100%.
When analyzing the structure of the turnover, one problem arises - determining the sales volumes of individual products in the assortment. The lack of complete accounting and efficiency can prevent accurate tracking of the sales of individual products, which complicates the process.
If computerization of accounting is not an option, the enterprise should apply the method of selective accounting and use indirect data for analysis. One of the most popular methods is the balance method using a special formula that reflects the balance of inventory for a certain period:
Z i = Zn i + P i - dR i - Zk i
Where:
Зн i and Зк i are the initial and final stocks of the i -th product;
P i — receipt of this product for the specified period;
dR i — documented expense without direct sale (for example, transfer of goods to a company branch, charitable events);
Р i — expenses of the i -th product, which may not coincide with actual sales due to undocumented expenses (losses, theft, accounting errors).
Unreported costs can be identified by comparing the total amount of expenses with the turnover of goods (cash turnover).
After studying changes in the product structure, the causes of structural shifts are identified and, if necessary, the product range is adjusted. This allows avoiding losses associated with the storage of illiquid goods and accelerates the turnover of funds.
The effectiveness of achieving sales goals directly depends on the effectiveness of the tasks performed by individual stores on a daily basis. Therefore, control and analysis of retail sales and all its components play a key role.
Comparison of daily sales volume with the monthly average will allow us to assess the degree of regularity of sales of food products.
Following the analysis, recommendations are developed to increase sales volumes and optimize the use of product resources in the future.
Read also!
"How to increase the flow of customers by choosing the right method"
Read more
Example of turnover analysis
How does the study of commodity turnover at an enterprise proceed in practice? For this, there is analysis and planning of commodity turnover. An example of analysis and conclusions will be considered below.
Example of turnover analysis
Source: shutterstock.com
Let's imagine a company called XXX, which specializes in the production of affordable office furniture. Each month it produces 200 computer desks, each priced at about 15,000 rubles, 1,000 chairs priced at 4,000 rubles, and 200 paper shelves at 5,000 rubles. Monthly sales include: 180 desks, 900 chairs, 180 shelves, total revenue is 7,200,000 rubles, taking into account the following calculations: 180 x 15,000 + 900 x 4,000 + 180 x 5,000 = 7,200,000.
The bulk of the products are sold through retail stores that are partners of the wholesale company. A small share of the products is sold by the XXX enterprise itself to various organizations and institutions, and this demand is unstable and difficult to predict.
The profitability level averages 648,000 rubles, which corresponds to approximately 30% of total sales.
The main task of XXX management is to increase furniture sales. This is necessary due to the underutilization of the enterprise's production capacities, which leads to the accumulation of some finished products in the warehouse.
It is impossible to fully sell the entire range of furniture produced by cooperating with a wholesale company. This conclusion is confirmed by the analysis of turnover over the past two years, which showed a stable level of sales through a partner wholesale company.
Taking into account the analytical findings, the management decided to sign contracts with dealers in various areas. Regular supply of products to representatives is planned, who will have to sell a pre-agreed volume of goods every month.
A wholesale partner company will have the opportunity to become an official representative in its area, which will provide it with privileged conditions in furniture supplies and deferred payment.
This move will bring XXX increase in profits, despite the delay in payment, the merit will be the full sale of the produced furniture and the reduction of its cost.
The latter is brought in by a certain amount of 7,200,000 rubles, of which 1,250,000 rubles will become profit. Further strategies for the company's development include increasing production capacity and expanding the range of goods.