SGA Benchmark for Retail (Store operations, general and administrative)How are you performing against your retail-industry peers? |
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In 2009, Deloitte’s first-of-its-kind store operations, general, and administrative (SGA) benchmark for the retail industry uncovered gaps which, on average, showed retailers significant improvement opportunities of $106 million per $1 billion of sales for strategic cost reductions. Not only did these opportunities speak to short-term relief but also to the long-term process efficiencies needed to jump start growth upon economic recovery.
For 2011, Deloitte’s Global Benchmarking Center again will offer retailers the opportunity to pinpoint cost gaps and prioritize improvement areas. The SGA benchmark covers the functions most critical to retail executives; store operations, merchandising, supply chain management, marketing, finance, HR, IT, and support services. Using client proprietary data, Deloitte provides both external industry peer as well as internal organization comparisons (geographic, banner, etc.) in 139 performance metrics. The 2011 benchmark participants will also receive along with their individual results, year-over-year trending and analysis if they participated in 2009.
How has Deloitte’s benchmark helped Retail Industry organizations? Participants from the 2009 benchmark have leveraged the insights gained in multiple ways.
- One leading apparel CEO used the data as ammunition to stop internal excuses and make cost reduction improvements across multiple business functions leading to significant savings and greatly increased efficiency.
- The CFO of another participant was able to develop a business case for greatly reducing store operating costs and improving sales per square foot.
- A national specialty apparel company validated an IT cost assessment and identified a multi-million dollar process gap.
Our benchmark is:
Fast. The Global Benchmarking Center works directly with your organization to gather SGA process data. We have a dedicated client service team, and assign clients a point of contact available at any time for questions or support during the data collection process.
Easy. Other benchmark providers gather hundreds of metrics requiring weeks of effort. Our question set contains fewer than 50 questions, but measures the critical functions within SGA, including four retail industry-specific functions, to quickly identify the areas of greatest improvement. We estimate 40-60 hours of data collection time, and all data is submitted via a secure, online application.
Insightful. Most importantly, our benchmark helps to identify areas for improvement within SGA operations. Your results are compared against the best-in-class (first quartile) and median performers of the industry-specific peer group. Discovering these areas of opportunity can help build business cases to support service-improvement initiatives.
Take action today. Enrollment for the 2011 SGA Benchmark for Retail is now open. Participation is easy - simply contact the Global Benchmarking Center at +1 866 897 4413 or benchmarking@deloitte.com , and we will work with you to begin the process.
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