Sharpen your retail competitive edge with the right metric
Your retail organization is about selling more product and retaining more customers. In order to stay competitive, you need to know everything you can about your business, your customers and your competition. Use these retail KPIs and metrics to keep your performance in perspective at all times.
Best Retail Metrics to Track
Ten common metrics monitored for retail store operations:
- Inventory to sales ratio (ISR)
- Same store sales growth
- Stock rotations
- Sales by department
- Cost of goods sold (COGS)
- Sales per unit area (ex. per SQFT)
- Frequency of store visits
- Product shelf-space profitability
- Sales by product category
- Stock value
Measures the quality of your customer service and provides a reflection of the public's perception of your business.
Point of Purchase
Measures where retail transactions are completed and compares each "point" over a given period to identify trends.
Cost of Goods Sold
Measures the actual profit margin on products and services by analyzing how costs such as labour or shipping affect your profit margin.
Measures the amount of sales you've gained as a direct result of marketing and promotional activities.
Average Purchase Value
Measures the average value of each purchase made by your customers and compares that to the average number of units per transaction.
Sales per Square Foot
Measure how much sales revenue you are able to generate for each foot of retail space provided.