GMROF ,GMROL,GMROI

........sounds quite complicated , but when one gets into the bottom of this , its quite a simple method of checking state of business or the efficency of operations , GMROF :: stands for Gross margin return per sqft , = Gross margins / sqft , gross margins ( GM ) = sales - cogs ( cost of goods sold ) , so to state the obvious the higher the GMROF the better , evolved retailers use this as a benchmark in getting efficency of departments within a store and between stores comparison ,

Strategies for GMROF increase ::

• Trick of increasing the GMROF , is by obviously increasing the mix of pvt labels share sale ,
  


• increasing the sell thrus
  


• better margin negotiation from suppliers and vendors
  

Operational Measures

• Put your best people to sell more of the high GM category
  


• Effective Use of VM to drive sell thru's
  

All this gets measured by a strong MIS back up , which makes the measurement of the same effective as the same gets delivered Fresh on managers desktop almost daily /weekly ,indian retailers have managed to make the best use of this , one to note is Shoppers Stop , which is evolved on this front .......

more abt GMROL,GMROI .................later