Retail Key Performance Indicators - KPI's

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Key Performance Indicators (KPI’s) for Retail:

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(This is a sample only - more detailed analysis of Retail KPI's can be found in Retail Math-Made Simple)

Sales compared to budget/target:

Actual sales $ divided by budget/target sales $.

Sales compared to last year (or any other period):

Actual sales $ for a given period divided by actual sales $ for the period you want to compare to.

Sales 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 units.).

Wage Cost:

Actual wage $ paid for a given period divided by actual sales $ achieved for the same period.


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Average Sale per Customer/Transaction:

Total sales $ for a given period divided by the number of customers or transactions for the same period.

Units per Customer/Transaction:

Total number of units sold in a given period divided by the number of customers or transaction for the same period.

Conversion rate:

The number of transactions in a given period divided by the total number of customers who entered the store during the same period.

Sales per Hour (for store or associate) – selling hours only:

Actual sales $ for the store divided by the number of selling* hours during the same period.

*selling hours are used here rather than total labor hours

Sales per Hour (for store or associate) – total labor hours:

Actual 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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