Indicators (KPI’s) for Retail:
(This is a sample only - more detailed analysis of Retail KPI's can be found in
Retail Math-Made Simple)
compared to budget/target:
sales $ divided by budget/target sales $.
compared to last year (or any other period):
sales $ for a given period divided by actual sales $ for the period you
want to compare to.
per Square Foot:
Actual sales $ for a given period
(usually a month or a year) divided by the total floor area (in sq.ft.)
of the store. There are variants of this indicator in terms of sales per
square foot of merchandisable area of choice (like walls and display
wage $ paid for a given period divided by actual sales $ achieved for
the same period.
Retail Math-Made Simple:
you can buy the book with complete formulas and full explanation of how to use
them on a daily basis.
Average Sale per Customer/Transaction:
sales $ for a given period divided by the number of customers or
transactions for the same period.
number of units sold in a given period divided by the number of
customers or transaction for the same period.
number of transactions in a given period divided by the total number of
customers who entered the store during the same period.
(for store or associate) – selling hours only:
sales $ for the store divided by the number of selling* hours during the
*selling hours are used here rather than total labor hours
(for store or associate) – total labor hours:
sales $ for the store divided by the number of labor hours used during
the same period.
Time Spent in the Store:
Average time spent by customers in the store can
be measured through sophisticated techniques utilizing RFID and wireless
technologies or manually. Reason for this measurement: There is a direct
correlation between time customers spend in a store and how much they buy.
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