Here is a fast, simple, and extremely telling measure of a retailer's financial viability!
Calculating GMROI enables any retailer to quickly assess their effectiveness at managing their largest asset: their inventory.
Now, thanks to our unique GMROI Growth & Bankability Rater, any retailer can see how their productivity compares to the average performing retailer in their segment. Get a quick comparison of retail financial viability.
This proprietary tool works for any retail operation, from $2 million to $2 billion, no matter the merchandise they sell.
What It Can Reveal
GMROI Higher than Average?
Retailers whose GMROI is higher than the average for their segment are managing their inventory more efficiently and achieving greater productivity than their peers.
These retailers are financially stronger than the others in their segment.
GMROI Lower than Average?
Conversely, a retailer whose GMROI is lower than the average for their segment is very likely to be in a cash crunch, or approaching one.
- GMROI is best used as a comparative measure; compare stores, or departments, or even vendors.
- GMROI reflects both margins and turns, and therefore reflects the financial dynamics in retailing.
- There is no one right answer for what GMROI "should" be. Given the variety of margins and turns between retailers in different segments, there are significant differences in average GMROI between specific retail segments.
Quick • Verifiable • Sophisticated • Uniquely Retail
ℹ️ more info on The ROI site