Same-store-sales data reveals how a store, or a number of stores, fares on a period-to-period basis. Conversely, if same-store-sales numbers are decelerating, it may signify that a host of problems exist, such as increased competition, a poor merchandise mix or a number of other factors that could be limiting foot traffic.
Delivered twice a week, straight to your inbox. But the good news is that if an investor knows what metrics to look forthe stock selection process will be much easier. There might be something wrong! Share In spite of the fact that their products are relatively easy to understand and relate to, retail companies can be difficult for the average investor to analyze.
However, back then, its former rival Walgreens maintained thousands of stores in a number of states nationwide and that also maintained stores in the New York area at the timeand was much more insulated against these regional difficulties and did not suffer the same degree of sales decline.
In short, changes in the inventory and receivable accounts should garner a great deal of attentionbecause they can often signal future fluctuations in revenue and earnings. As a rule, investors should look favorably upon stores that are well-lit, sell timely and fashionable merchandise, have neat displays and offer very few discount items.
However, if inventories are growing at a faster rate than revenues, it may indicate that the company is unable to sell certain merchandise. In fact, these are all questions that the investor should ponder that will help him or her determine the overall health of the company.
Investors should be extremely wary of companies that are experiencing a decline in gross margins either sequentially or year-over-year. It should go without saying that same-store-sales numbers, inventory trends and margins in addition to a number of other factors should also be considered when selecting a retail stock for investment.
However, at the same time, Sears Holdings traded at about The Bottom Line To analyze retail stocks, investors need to be aware of the most common metrics used, as well as the company-specific and macroeconomic factors that can have an impact on the underlying stock prices.
Are there lines at the registers? Unfortunately, when this happens, companies are usually left with just two options - they can either sell the merchandise at a really low price point and sacrifice margins, or they can write off the merchandise altogether. The resulting number should then be divided by the total number of outstanding shares.
To that end, below is a list of nine tips that all investors should use when determining whether a retail stock is worth the investment: The savvy investor will also take note of the foot traffic in store. Then the September 11 terrorist attacks occurred.
Are shoppers buying big-ticket items in bulk, or merely lurking around the discount racks hunting for bargains? Put yet another way, try not to invest in companies with too much at stake in one geographic region. If receivables are growing at a faster rate than revenues, it may indicate that the company is not getting paid on a timely basis.
Companies that are trading at or near tangible book value per share are considered to be a good value. Ideally, an investor would like to see both sequential and year-over-year same-store-sales growth. In any case, its worth investigating, because it will give investors a sense of what the business is truly worth on an asset basis.
Examine Gross Margin Trends Investors should look for both sequential and year-over-year growth in gross margins.
Get a free 10 week email series that will teach you how to start investing. Trading Center Want to learn how to invest? It may also suggest that Walmart has a better merchandise mix, and may have more flexibility with respect to its margins, though other factors would have to be examined to determine whether this is the case.
However, investors should also keep seasonality effects in mind.Our market-leading Digital Pulse newsletter is an invaluable source for digital and ecommerce analysis, inspiration and learning. I think we have seen the resurgence of the concept store. In fact, I think retail has woken up to the value of service, great product display, interactivity, digital technology and a great shopping experience.
Excelsior Milano Opens; Becomes Best Store Ever. Sep 14, By Christina Mannatt. Share. Excelsior Milano is a seven-floor concept store brought to you by Italian retailer Gruppo Coin and French starchitect Jean Nouvel. retail analytics, consumer insights and bespoke consultancy services.
We would like to show you a description here but the site won’t allow us. It's a growing trend in retail, and Supervalu says it will be "unlike anything you'll see in any Cub." urban concept grocery store in unit complex being built by Excelsior-based. Excelsior Milano, Milano. 64K likes. Excelsior Milano Official Page Instagram: killarney10mile.com The Excelsior in Verona will cover 5 floors and a total of sqm, the investment being estimated at 8 million euros.
Excelsior is a mix between a department store and a concept store, featuring ready to wear, sportswear, shoes, accessories, CDs, DVDs, gourmet foods but also shop in shops such as Tiffany.Download