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Toolbox - Retail Basics: Managing Key Indicators

This workbook is designed to help managers improve operational performance through enhanced understanding of the key performance indicators at the department level. In addition, this workbook provides tools and recommendations on how to manage these key indicators. Through this workbook, readers will gain knowledge on the relationship between financial performance and the interrelated key indicators of margin, labor, inventory turns, and sales growth.

The Managing Key Indicators workbook is designed to complement NCGA’s Retail Basics (RB) training program and the RB 102, Managing Key Indicators, module. It reviews the four key indicators that affect operations at the department level and how to influence these indicators.

The workbook covers the following in five chapters:

  1. Financial Statements – an introduction to the income statement, balance sheet and cash flow statement with highlights of where data for each of the four key indicators show up in these statements.
  2. Margin – basic margin formulas, terminology, and how to manage margin to achieve gross profit goals. Also covers variable, contribution, and achieved margins. 
  3. Labor – the basic components of the cost of labor, different ways to measure labor costs, factors that impact labor expenses and tools for managing and forecasting labor. 
  4. Sales Growth – how sales growth is defined and measured, why sales growth is important, what impact it has on gross profit, and factors that can influence growth rates. 
  5. Inventory Turnover – basic tools for managing inventory including an inventory effectiveness measure, how inventory affects cash flow, and tools to impact inventory turns.

Included with this manual (as separate files) are sample documents, provided in Microsoft Excel format, which can be easily edited and tailored to meet your specific needs. Included are the following:

  • Contribution Margin Example (excel file)
  • Contribution Margin Tool (excel file)
  • Schedule for Price Audits (excel file)
  • Sample Deli Cost Worksheet (excel file)
  • Produce Pricer (excel file)
  • Department Sales / Labor Analysis Worksheet (excel file)
  • SPLH Scheduler (excel file)
  • SPLH Budgeting Tool (excel file)
  • Labor Budgeting Tool (excel file)
  • Inventory Turns (excel file)
  • Purchasing Budget Tool (excel file)
  • Purchasing Budget Calculator (excel file)
  • Receiving Log (excel file)

All rights reserved. No part of this book may be reproduced without the prior written permission of the National Cooperative Grocers Association, except for the inclusion of brief quotations in an acknowledged review. Co-ops that purchase this manual electronically may store it electronically and print copies for sharing with other staff or officials of that co-op only. Sharing this manual with individuals or organizations outside of the purchasing co-op is expressly forbidden.

Price: $65 for CGN members. (Note: the manual is updated as of April 2012. Users who have downloaded the older version may download the revised edition at no additional charge. Click to “purchase” the new edition for no charge and CGIN will make sure not to bill previous owners.)
Price: $75 for non-CGN members.

To purchase this resource, please email, or call Dan Nordley at 612/436-9177.  (Only cooperatives are eligible to purchase this resource.)