Real margins. Real cash cycle. Not just same-store sales.
Retail looks healthy until rent and inventory both start eating cash. CFO Grade reads your numbers and flags where you're really leaking margin.
Worth quotingRetail stores where rent exceeds 10% of revenue rarely earn an EBITDA margin above 5% — occupancy cost is the second-largest predictor of retail failure after inventory turn.
Built for owners and analysts who say…
- "Sales are flat and rent keeps going up.
- "Inventory keeps growing faster than sales.
- "Need to know whether the second location is a real opportunity.
What you'll get
- Retail-specific inventory turn and cash cycle
- DSCR check before a credit line draw
- PDF for landlord, banker, or partner
- Plain-English memo on margin protection
People also ask
Common questions about retail financials
What is a good gross margin for retail?+
Healthy gross margin is 30–50% for most general retail. Specialty boutiques can hit 50–60%. Big-box discount retail runs 22–30%. Below 25%, scale gains are limited because the unit economics are too thin to absorb shrink, returns, and markdowns.
What inventory turn should retailers target?+
4–8 turns per year is healthy depending on category. Apparel: 4–6. Grocery: 12–20. Furniture: 2–4. Below your category benchmark and inventory is sitting too long — markdowns and obsolescence costs will follow.
How is occupancy cost related to retail profitability?+
Occupancy cost (rent + CAM) under 8% of revenue is healthy. 8–10% is acceptable. Above 10% is a red flag — most retailers with double-digit occupancy cost run EBITDA margins under 5%. Negotiate or relocate before extending the lease.
Is a second location a good idea?+
Only if your current store hits: 4+ inventory turns, EBITDA margin above 10%, DSCR above 1.5×, and current ratio above 1.5×. Anything weaker and you're amplifying a problem, not solving it. CFO Grade will flag these four in your dashboard.