RECOMMENDED NEWSXPRESS BUSINESS PERFORMANCE BENCHMARKS

UPDATED SEPTEMBER 2024

Benchmarks are important as they provide business performance data points against which similar businesses can compare their performance.

newsXpress has its own set of benchmarks as its business model is not that of a traditional newsagency. The benchmarks below and guidelines and they are subject to change as the suggested business model evolves:

1. Gross profit: this is the goal gross profit for all product sales not taking into account any revenue or costs related to any agency business. The traditional newsagency average continues to sit at 28% to 32%. For newsXpress stores, we think a GP% goal of 45% is appropriate.
2. Minimum stock turn. That is, the number of times you sell an item in a year. This is a calculation based on current stock holding against total revenue for a year. Here are suggested stock turn goals by key departments. These numbers are based on what is needed at a minimum for a department to be valuable:
   1. Cards - 3. The average sits at 1.75. This is too low.
   2. Gifts - 7. This means a tight mix of products turning quickly.
   3. Toys - 5.
   4. Plush - 5.
3. Ratio of Gift revenue to Card revenue: 100% minimum. The goal ought to be 200% or more. If you do $50K a year in cards, toe goal is to do $100K a year in gifts. 
4. Ratio of Plush to Card revenue: 25% at the high end. Note: we recommend reporting plush revenue outside gift and toys.
5. Ratio of Toy revenue to card revenue: 25% at the high end. Note: we recommend you reporting toys outside gifts.
6. Revenue per employee - $250 an hour minimum.
7. Revenue PSQM $4,500 - $8,500 depending on country versus city / high street to shopping centre and depending of the product mix. Higher GP lower revenue required.
8. Overall revenue mix percentage targets: Cards: 30%; Gifts/toys/plush: 45%; Stat: 10%; magazines/newspapers: 10%; other: 5%.
9. Category performance notes:
   1. Stationery. Pens and writing products should account for more than 30% of revenue.
   2. Magazines. Crosswords should account for more than 6% of unit sales.
   3. Lifestyle cards. Should be more than 50% of total card sales.
   4. Impulse counter items: (NeeDoh, sensory, putty, world's smallest) should be more than 10% of toy and related sales.
10. FLOORSPACE ALLOCATION: This is very much a store specific thing. That said: Cards: 20%; new traffic lines: 5%; Gifts/toys/plush: 35%; Stat: 8%; magazines/newspapers: 10%; other products: 10%; office/back room / counter: 10%. You don't make money from your back room.
11. Mark-up goals: Stationery: 125%; Gifts 110%; plush: 110%, jewellery 300%.
12. Occupancy cost: between 9% and 11% of revenue where revenue is product revenue plus commission from agency lines. Location and situation are a big factor in this benchmark. For example, a large shopping centre business will have a higher cost than a high street situation. NOTE: It is easy to say the landlord is responsible for this ratio. As the retailer you are responsible for margin and revenue.
13. Labour cost: between 9% and 11% of revenue where revenue is product revenue plus commission from agency lines. Labour cost should include fair market costs for all who work in the business. (See above).

These benchmark figures don’t all need to be considered together. You can pick one, measure, work on it and measure. The goal is to continually improve to pass the benchmark and work on the next.

Some of the data points will vary considerably based on local circumstance.

If you have any questions about any benchmark, please contact help@newsxpress.com.au and we will get the person best skilled in that area to speak with you.

Note: we understand that a target GP% of 45% will seem high. The reality is that if you have this as a serious goal it focusses your mind on buying, mark-up, sell through efficiency ... your whole business. Your decisions from buying through to sale all play into the achieved GP%.