• Footwear retailing

    Businesses in this industry sell shoes. Some businesses may also sell accessories and provide shoe repair services.

    These benchmarks do not apply to clothing retailers or businesses that specialise in shoe repairs.

    Performance benchmarks

    These performance benchmarks are updated annually and developed using the information reported on income tax returns and activity statements for the 2013–14 year.

    These benchmarks show a number of different financial ratios of business income to business expenses, to help businesses compare their performance against similar businesses in their industry.

    The key benchmark ratio for this industry is cost of sales to turnover (see definitions). This ratio is likely to be the most accurate predictor of business turnover. For businesses that do not report cost of sales or only report a small amount, total expenses to turnover can be used to predict turnover.

    2013–14 financial year

    Key benchmark ratio

    Annual turnover range

    $65,000 – $150,000

    $150,000 – $600,000

    More than $600,000

    Income tax return

    Cost of sales/turnover

    44% – 59%

    49% – 58%

    50% – 55%

    Average cost of sales

    52%

    54%

    53%

    Total expenses/turnover

    75% – 85%

    81% – 89%

    85% – 92%

    Average total expenses

    80%

    85%

    89%

    Activity statement

    Non-capital purchases/
    total sales

    66% – 77%

    68% – 77%

    69% – 76%

    The following benchmarks can be used as a guide for businesses to review their performance and business practices against other similar businesses.

    Not all expenses are reported by every business, so one or more of the benchmarks below may not apply to an individual your business.

    Benchmark ratio

    Annual turnover range

    Income tax return

    $65,000 – $150,000

    $150,000 – $600,000

    More than $600,000

    Labour/turnover

    17% – 25%

    10% – 16%

    12% – 16%

    Rent/turnover

    13% – 21%

    9% – 16%

    8% – 14%

    Motor vehicle expenses/turnover

    3% – 4%

    1% – 2%

    1% 

      Last modified: 25 Feb 2016QC 43777