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Patricia M. Johnson & Richard F. Outcalt
Retail Strategists and Retail Turnaround Experts
Co-Founders, The Retail Owners Institute® • Business Strata:G®
Latest Results Just Now Available!
The ROI’s Key Retail Benchmarks Charts are one of the most-used resources of The ROI. And for good reasons!
Presented visually, these compelling five year trend charts reveal how stores in 40+ retail verticals are trending on key financial indicators:
profitability
inventory productivity
financial strength.
Go here to see the latest results for your industry vertical.
As you compare your results to these industry results, you can quickly identify areas of strength as well as opportunities for improvement. (Or in other words, you can be your own consultant!)
Or, contact us and we’ll show you how to use the Benchmarks and improve your operation going forward.
As you ponder 2025 and look ahead to 2026, now’s the time to take advantage of this resource. We’re here to help.
And yes, The ROI continues to provide these unique and useful Benchmark Charts for free.
Yes, most everyone’s first stops are Pre-Tax Profit % and Gross Margin %.
However, Debt-to-Worth Ratio and Current Ratio are the most significant regarding your financial strength.
And here’s the key: Turnover and GMROI help to explain why those four are what they are.
Many people are first introduced to The ROI through the Retail Benchmarks pages.
But do you know? The ROI also has a Retail Benchmarks Resource Center, a one-of-a-kind resource for owners.
Nowhere else will you find such a clear explanation of what each of these ratios measure, how they are calculated, and most important, why they matter so much to Owners of retail operations.
Want to be empowered? Take advantage of the Benchmarks Resource Center!
Take 40 or so minutes to watch the lively, insightful webinar about the Indispensable Retail Owner's Dashboard.
Review why all this matters to Owners.
See how each key ratio is calculated.
Get your own master copy of the Owner’s Dashboard. Yes, it IS low-tech. (And that’s a feature, not a bug!) But is it ever high value!
There is an explanatory how-to article - "Go Figure! Calculate Key Ratios in 12 Seconds Flat!"
The "Key Ratios Cheat Sheet" is a quick reference to the formulas for each ratio, where to find the numbers, and what the calculations mean.
Then, once you know how to calculate your ratios with a pencil (“12 seconds each – max!”), use The ROI's KEY RATIOS Calculator to make quick work of it (and immediately compare your ratios to your vertical.)
All in all, the Benchmarks Resource Center is a very complete companion resource to the ever-popular Retail Benchmarks charts. All of its specialized resources are available free!
Let's say you're feeling better about your business. It's no longer losing money. Sales are inching upwards. You're ready to move past that "hunker down" mentality of recent years.
But, you discover that your vendors, or your bank, or your landlord do not share your enthusiasm! They say, "Glad your sales are better, but...." Or, "Our credit department is still reviewing it."
"What's with that?", you wonder. "How could they NOT want more business from me? I've been a darn good customer! Is there something they know that I don't know?"
Could be. And you won’t find the answer on your P&L.
Here's what your Balance Sheet is telling outsiders - in nanoseconds! - about your business:
Will you be able to pay your bills on time?
Is your business getting financially stronger, or weaker?
This lively Webinar of the Week, led by Pat Johnson and Dick Outcalt, Co-Founders of The Retail Owners Institute, will show how you can know that for yourself. In moments.
After all, your vendors and lenders already are doing this. Shouldn't you know what they know?!
RetailOwner.com
Avoid mistakes • Seize opportunities • Look ahead now
We recently saw a cartoon that made us laugh out loud — and then think of the Strata:G Calculators.
The cartoon shows a puppy at birth, then at 8 weeks, then at 20 weeks, and finally — in the “projected” panel — a long-legged, pointy-nosed, skinny-tailed creature labeled “Projected growth based on trend.”
Of course, that’s the problem with straight-line projections, isn’t it? Arithmetic will happily keep extending a trend forever. Reality? Not so much.
That’s where the Strata:G® Calculators stand apart.
Sure, anyone can make a spreadsheet do math. “Raise sales 5% a month.” Blink. Done. The numbers march neatly down the page, perfectly consistent — and perfectly meaningless.
What the Strata:G Calculators do is different. They’re built with room for your business savvy baked in.
Here at The ROI, we know that:
Not every line moves on trend.
Some expenses scale with sales, others don’t.
And most importantly, some numbers need the Owner’s judgment, not the accountant’s formulas.
In short, Strata-G Calculators know what matters — and what can safely be rounded off to the nearest thousand.
Our goal has never been to make accountants into forecasters or owners into bookkeepers. It’s to give decision-makers a clear, Big Picture view — the kind that sparks conversations, sharpens instincts, and leads to better decisions.
And now, AI is generating more possibilities and more "maybe we should..." ideas than ever. But which ones are truly worth pursuing?
With the Strata:G Calculators, you can hold every AI-generated idea accountable – instantly.
They’re fast, practical, and built for the realities of independent businesses. Perfect for busy owners in the AI Era. See more at The ROI’s What If…? Planning Center where your good judgment is very much respected.
Well, it’s that time of year when owners are receiving their financial statements for 2025. Whether it’s been prepared by your outside accountant or bookkeeper, or in-house with your accounting system, it contains some very useful information amidst a lot of detail.
Before you spend any time with it – and especially before you simply toss it into that bottom left hand drawer – check out this short article from The ROI about how to make your financial statement useful.
You’re already paying for it; now’s the time to unlock its value. 🔑
2025 may have been very challenging for your business, but 2026 doesn’t have to be. Maybe we can help.
As an independent retailer, you carry a lot on your shoulders, but you don’t have to face it alone. The Co-Founders of The Retail Owners Institute offer personalized consulting services designed to help you navigate today’s retail challenges.
Start with a free, confidential Zoom session with our Co-Founders, Pat Johnson and Dick Outcalt. Known as “The Zen masters of retail finance,” Pat and Dick bring decades of experience and a practical, empowering approach.
Reserve Your Complimentary Session Now
It will be fun to meet you!
The Retail Owners Institute® has been empowering owners since 1999 to "Turn on their financial headlights!" Our tools and resources are trusted by thousands of independent owners to help grow financially stronger and resilient businesses.