Data Scout is LSA’s series that curates and draws meaning from third-party data. Running semi-weekly, it adds an analytical layer to the industry data that we encounter in daily knowledge building. For LSA original data, see the separate Modern Commerce Monitor™️ series.
The CRM firm Womply has pored through sales figures for 52,000 small, local retailers across the U.S. throughout the 2018 calendar year to come up with a pretty fascinating picture of the ebb and flow of a small retail business.
The study lets us know when retailers are busiest, when they make the most profitable sales, when customers are feeling a little spendy, and when they are not.
The report, The State of Local Retail, looked at three metrics across the retailers it examined — transactions per day, ticket size and daily sales revenue. The average retailer in the U.S. generates $961 in daily sales revenue. This means the average shop, assuming it’s open six days a week and 52 weeks a year, generates annual sales of about $300,000. Of course, there is tremendous variation in performance from store to store, but this figure underscores how precarious retail is and makes it easy to see how one bad holiday season can wipe a store out.
The Womply report also looks at patterns in retail transactions to see when stores can expect to be busy, and when the best customers shop.
For example, while Friday and Saturday are the busiest shopping days of the week, no big surprise there, average ticket value is actually higher during the week.
The report also makes the case for staying open on Sundays, something only 43% of retailers do. Retailers average 17 transactions on Saturday, the busiest day of the week. Those that are open on Sunday see 15 transactions on average, making it the second busiest day for those that do open their doors.
We read a lot of reports like this and it’s always interesting to consider how content aligns with a company’s objectives. The benefit to Womply in doing this study, beyond the mere attention it generates (this post being a case in point), is that it illustrates the value software can bring to retailers, and to small businesses in general.
The obligatory C-suite quote in the press release for the report makes this objective clear.
“Local retailers should never have to feel like they’re operating blind, especially as they compete with a growing number of online retailers who have lots of data,” said Womply Founder and CEO Toby Scammell. “Our State of Local Retail report gives retailers visibility into the behavior of consumers where they operate. Armed with these insights, we hope retailers become more empowered to make data-backed decisions that positively impact their bottom line.”
As our Modern Commerce Monitor™️data shows, SMB software companies like Womply compete less with rival software providers than they do with the failure of many SMBs to use any software, or their failure to fully utilize the features of the software they’ve licensed. Companies producing powerful yet complex tools like CRM face this challenge more acutely since they require meaningful investments of SMBs’ time in order to reap the full benefit of the software.
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