Key Performance Indicators in Retail

There are many indicators to measure the performance in Retail. Here is the list of the KPIs that I think are often used:

1. Gross Margin/Sales Ratio
2. Sales per Square Foot
3. Average Customer Spend [and/or number of Unit per Transaction (UPT) depending on the homogeneity of the products sold, and/or Average Daily Sales (ADS)]
4. Inventory Turnover Rate (Sales/Average Inventory , it is the number of times the average inventory of a product is sold a year. It tells how quickly the inventory is sold)
5. Sell Through Rate 
6. Sales per Staff/Sales Person
7. Sales per Day

The following indicators can  help to answer questions about the performance of a store:

• Footfall (the number of people entering a store in a given time. This is a critical indicator, but may not always available)
• Returns

When using these KPIs to analyze the performance of a store, remember to set a benchmark first.

For more detail, please read:

• Top 10 KPIs
• 7 KPIs to Improve Retail Performance