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Retailers globally use Retail People Metrics, KPIs & KRAs to succeed in today’s highly competitive environment along with greater expectations for outstanding customer experience.

Origin Consultants help Retail Organizations search for new ways to drive growth and measure profitability. It is getting increasingly critical to develop newer, more relevant retail metrics, KPIs and KRAs to accurately value and measure retailers’ success and performance.

Retail Metrics, KPIs & KRAs provide a vital tool for improving performance, making better business decisions, and gaining a competitive advantage. A well-designed set of Retail Metrics must be able to provide a clear picture of current levels of performance and will help your Leadership Team make better decisions that bring the business closer to achieving its strategic objectives.

Origin Consultants has been helping its Retail Clients identify relevant Retail Metrics, set KRAs and KPIs that reflect and support the various strategies for all aspects of the organization.

Our Performance Management Experts ensure that the KRAs, KPIs and Metrics are designed, implemented, and used exactly as they were intended to - help your company succeed! We align KRAs, KPIs and Metrics to the priorities of the company and provide clear measurement and review processes on overall employee and company performance.

The Performance Management Team has compiled a list of Top Retail Metrics and KPIs to track your retail people performance. However, since every retail organization is different, some metrics may be more significant and some not so relevant to you than others.

Sales Metrics and KPIs

Sales per square foot - amount of sales you generate per square footage of sales space in your store.

Sales per employee – average of Sales achieved per employee.

Average Basket Size – this metric pertains to the average number of products bought per customer.

Average Transaction Value – which is the average amount a customer spends at the store.

Conversion Rate of the Store – ratio of total store visitors to the number of customers who bought at the store.

Foot Falls - This refers to the number of people who walk into your store.

Gross and net profit - Profit after deducting the costs of making and selling the product. Net profit shows what you made after deducting your cost of goods and all other business expenses.

Sell-through - Sell through is the % of units sold versus the number of units that were available to be sold at the Store.

Shrinkage - Shrinkage pertains to a loss of inventory that is not due to actual sales. It is generally caused by employee theft, shoplifting, administrative errors or due to supplier fraud.

Year over year growth – tells you whether your business is growing or not.

Sales Employee Metrics

Total Sales Achieved v/s Sales Targets

Average Basket Size – average number of products bought per customers attended by the employee.

Average Transaction Value – average amount spent by the customers attended by the employee.

Conversion Rate – ratio of total customers attended by the employee to the number of customers who eventually bought.

Inventory metrics and KPIs

Stock turn / Inventory Turnover – this is the number of times stock is sold through or used in a given time period.

GMROI - Gross Margin Return on Investment is your profit return on the amount invested in stock.

Customer Retention Rate - tells you the number of customers that return to your store and give repeat business.

Reach out to Origin Consultants to understand which retail metrics can help you make smarter forecasts and business decisions. Learn about the metrics that are relevant to your business and know when and how to measure them.

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