Annual P&L Study 2021 - It's Beyond WOW!

Annual P&L Study 2021 - It's Beyond WOW!

by Tim Quebedeaux

P&L Study 2021, after the WOW year of 2020, we were prepared… and the results showed it.  But how did the pandemic and the eventual supply chain issues eventually affect our readiness for 2022? The numbers show the story.

Let’s start with the number of High Achievers (5-10% Adjusted Profit) and Best Practices (10% plus Adjusted Profit).  Both of those percentages are adjusted if you are a Retail Grower based on the amount of grown product sold.  With a record-tying 78 participating garden centers, the total number of High Achievers and Best Practices also set a new record, with a total of 65, outreaching 61 in 2020.  And even more Best Practices – 47 in 2021, three more than 2020.

We were prepared for operating in a pandemic in year two.  Last year, the increase of revenues with the struggles of operating within the pandemic was a struggle.  As revenues experienced a double-digit increase for two years in a row, our preparedness was tested.  The average Revenue level in the 2019 P&L Study was 2.25M.  If you take that average and apply the increases in 2020 and 2022, you would be at 2.95M, which is an increase of 31% in just two years.  And that is the average, but many centers experienced more growth than that!

Revenues are one thing, but the measure of a business is how those dollars are turned into profit on the bottom line.  We measure many KPI’s (Key Performance Indicators) that show how revenues turn into profit, but the report card grade is profitability percentage.  In 2021 we had an increase of 1.8% to 15.4% for the Total Group.  With two years of outstanding performance, take a deep breath and congratulate yourselves!

Once again, the Total Group KPI’s lined up closely with Best Practices.  This was caused by the majority of the Total Group (60%) being Best Practices.  Also with the Total Group averaging profitability over the Best Practices Goal of 10%, it didn’t give many Garden Centers numbers to look up to as in previous years.  So again, for the second year, the BEST of the BEST group is being used to raise the bar.  This group is the top ten most profitable Garden Centers that completely filled out (all 5 parts) the P&L Study.

The summary for the Annual P&L Study of 2021: more Garden Centers reporting, more Revenues, more Profitability, and more inventory??? 

More of this story to follow… see Part 2 of the series HERE.

Got questions or need more information about The Group's the Annual P&L Study or the Weekly Department Review (WDR)? Give Tim a call or email.

Tim Quebedeaux
Cell: 770.355.6249

Group Client Reminder: You can watch the March 10th GROUPtalk LIVE presentation when Tim and Steve presented 2021 P&L Study Reveal. Log into the WebSystem and go to the Clients-Only menu and down to Training - 2021 P&L Study Reveal.

Tim Quebedeaux, RetailKPI Consulting, 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 industry exclusives developed by The Garden Center Group and are included in your retainer!

REMEMBER: Your interaction (by phone and email) with Group Service Providers such as Tim Quebedeaux, Sid Raisch, Jean Seawright, John Kennedy, and of course Danny Summers 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!


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