The 2017 P&L Study - Where Do We Begin?

The 2017 P&L Study – Where Do We Begin?

by Steve Bailey

Where Do We Begin? Actually, I’m just messing with you, I know where to begin telling you about the 2017 Profit & Loss Study. But there is so much more than I can fit into one article that I’ll be dropping into GROUPtalk from time-to-time to give you even more information from the Study that you can use in your daily management of your Center.

But for right now, let’s get into the who, what, and where of the P&L Study participants. Although we were down a few centers in reporting compared to 2016, the Revenue level remained steady. The seventy-one participating Centers as a whole generated more than $150,000,000 in Revenues.  That means that the average reporting Center came in at about $2.1 million. If that is more (or less) than your Revenue level, don’t think these results are not relevant as there is much more for you to compare with on the Sales, Mode of Operation, and Regional group level.

Even before we begin, I’ll deliver the good news – overall Profitability was up 0.8%! While that may not sound like a major accomplishment, when n you put that against $150,000,0000 in Revenues, it equates to $1.2 million in additional Profit dollars for the reporting group. That’s certainly not small change, and something The Group should be proud of.

As has been the case in recent years, two-thirds of the reporting centers operated in a Retail mode. This means they did not grow any of their products, instead choosing to buy their product (both perishable and non-perishable) in from other suppliers. The other one-third of the Centers grew at least 50% of one category, putting them into the Retailer/Grower groups. These same ‘mode of operation’ groups were then subdivided into three Revenue levels – less than $1.5 million, $1.5 to $2.5 million, and greater than $2.5 million. That translates into six sales groups based on mode of operation and revenue levels.

The one comparison group that everyone wants to be in is the Best Practices/High Achievers. In case you don’t know, the High Achiever Retailers have a Profit goal of 5% - 10% to be in the High Achiever group, and above 10% to be recognized at the Best Practices level. Retailer/Growers have a little higher level of achievement expected, since they should be profitable as both a Retailer and Grower for that portion of their grown product.Their actual goal for High Achiever and Best Practices is calculated based upon the retail value of their product grown and sold reported.

This year saw twenty-six out of the seventy-one centers reporting in the coveted BP/HA group. Overall, this group achieved 11% Profitability, an excellent level of attainment. More on this group later as we proceed through the P&L Study.
For comparison purposes, we also divide the seventy-one garden centers into Regional groups. Varying in size from three to fourteen centers, each regional group carries with it some regional differences in the numbers that are worth noting and managing.
I told you earlier that the information conveyed here would help you manage your garden center better. And it will. But I also hope to entice you to report to the 2018 Profit & Loss Study next January so you will have ALL the data management ratios you need. More on that later.

That should give you a pretty good idea of the size and scope of the 2017 Profit & Loss Study. Participating in the Study is included in your Group retainer. No other retail organization compiles an exhaustive report such as this, and others that try charge their clients more than the Group retainer just for their report.

In the next article in this series, we’ll cover the Revenues section and possibly more. Same old, same old? Hardly, there were some surprises in this year’s Study you need to know about. Look for it in an upcoming GROUPTalks. And don’t forget, if you reported and have not scheduled your FREE one-hour review session with me, there’s still time to get it done. Email me and let’s get it set up.


Got questions or need more information about the Annual P&L Study or your profitability? Give Steve a call or email!

Steve Bailey
Tel: 618.319.9205
Cell: 618.521.5225


Steve Bailey is a service provider for The Garden Center Group and manages all Group financial sharing programs. The Weekly Department Review (WDR) and The Annual P&L Study are exclusives to The Garden Center Group and are included in your retainer!

REMEMBER: Your interaction (by phone and email) with Group Service Providers such as Steve Bailey, Robert Hendrickson, Sid Raisch and Jean Seawright, are included in your retainer! So what are you waiting for? Take advantage of all that The Group has to offer and give them a call or send an email now!


Share this post:

Comments on "The 2017 P&L Study - Where Do We Begin?"

Comments 0-5 of 0

Please login to comment