Page 23 - AHS_Retail Book-2018

22 PRODUCT CATEGORIES

Stationary Upholstery Home Offi ce
Stationary Leather Dining Room PROFITABILITY
Motion Upholstery Bedroom
Motion Leather Youth Bedroom
Sectionals Top of Bed GMROI: THE SCIENCE OF SUCCESS
Chairs Lighting
Recliners Rugs
Occasional Tables Accents Gross Margin Return On Inventory (GMROI) is a measurement Ashley uses to help our
Entertainment Accessories dealers maximize their profi tability. The fact is simple—large volumes of product tied up in
Wall Systems Mattresses a warehouse are not generating profi t and incur operational cost in storage. By leveraging
Outdoor Pillows Ashley’s warehouse and rapid distribution systems, retailers can stock less, turn faster
and increase operational effi ciency.

Time is money and Ashley’s proven methodologies ensure that our retailers can optimize
their success.

GMROI
GMROI is annual gross
margin* divided by average
annual inventory at cost†

CHAIR A CHAIR B

Selling Price $439.99 $439.99

Cost $219.99 $219.99
$220
Gross Margin
EVERYTHING Gross Margin Percent $220 50%
50%
Sales per Month
100 units
100 units
DELIVERED ON ONE TRUCK Reorder Lead Time 14 days 140 days
400 chairs
Average Inventory
50 chairs
As a manufacturer and retailer, Ashley delivers over 30 million Gross Margin per Chair $220 $220
products for almost every room in the home. With the rising Gross Margin x100 Chairs/Mo. $22,000 $22,000
demand for stylish home furnishings, we’re introducing new Annual Gross Margin-12 Months $264,000* $264,000*

product categories to inspire our customers. The recent launch Inventory (Avg. Inventory x Cost) $11,000 † $87,996 †
of Outdoor by Ashleyis proof that Ashley remains the dominant GMROI $24 $3

player inside and outside the home.

26 / ASHLEY HOMESTORE