Retail

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Retail Management for Spas | Chapter 4.4 | Manual Recordkeeping

March 27, 2017

An important step in monitoring the retail plan requires posting to the planning format each month’s actual sales, markdowns, and other activity. 

Retail Management for Spas | Chapter 4.5 | Shrinkage

March 27, 2017

Simply stated, shrinkage is the difference between the inventory the spa has on hand and what it should have on hand. In the retail industry, an estimated 1.54 per cent of annual sales losses are due to inventory shrinkage. According to the 2004 National Retail Security Survey, specialty apparel is the category with the highest shrinkage, at 2.93 percent, while department stores run around 1.51 percent. But where is the merchandise going? Losses break down as follows: 47 percent internal/employee theft, 34 percent shoplifting, 14 percent paperwork errors, and 5 percent vendor fraud.

Retail Management for Spas | Chapter 5 | Evaluating Financial Performance

March 27, 2017

At the Urban Spa …

Reuben, the manager of the Urban Spa, hung up the phone in frustration. Fiona Matthews, the owner of the Urban Spa, a day spa and salon, was demanding that Reuben explain why the cost of goods sold in April was 56.5 percent when it was budgeted to be 50 percent.

Retail Management for Spas | Chapter 5.1 | Retail Sales Percentage of Total Spa Revenue

March 27, 2017

All of the information needed for financial evaluation can be found on the retail department schedule in Exhibit 1. This departmental schedule covers revenue, adjustments, cost of goods sold, gross margin, direct expenses, and the final income/loss departmental contribution. This is a generic schedule designed to fit all spas; individual spas will have modified schedules to meet their own needs and requirements. Several of these items are evaluated monthly.

Retail Management for Spas | Chapter 5.2 | Retail Sales Contribution by Merchandise Classification

March 27, 2017

Some spas with significant retail revenue will want to monitor retail sales by classification as compared to plan. This information is valuable as it can aid spa professionals in…

Retail Management for Spas | Chapter 5.3 | Retail Sales Per Ticket

March 27, 2017

Another way to evaluate the retail sales of a spa operation is to compare retail sales to the number of tickets posted during the month. 

Retail Management for Spas | Chapter 5.4 | Retail Sales by Therapist

March 27, 2017

The most common measurement of spa retail is retail sales per treatment by therapist. 

Retail Management for Spas | Chapter 5.5 | Retail Markdown Percentage

March 27, 2017

Markdowns and retail discounts are two factors that affect the cost of sales. Discounts are strategic decisions made by management. 

Retail Management for Spas | Chapter 5.6 | Retail Sales Per Square Foot

March 27, 2017

In the classic retail environment, revenue is monitored on a sales per square foot basis that is calculated annually by dividing total retail revenue by the square footage of the spa retail space. 

Retail Management for Spas | Chapter 5.7 | Cost of Sales Percentage

March 27, 2017

The cost of sales measures the profitability of retail sales. It is a ratio between the cost of the goods sold and the net revenue. It is always expressed as a percentage of net revenue, never as a specific dollar amount. The specific dollar amount is expressed as the cost of goods sold. It is the largest expense within a spa retail department and merits study on a monthly basis.

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