Key Performance Indicators

Retail

Retail Industry Key Performance Indicators

The retail industry is interesting in that usually there will be a very large customer base; but this customer base is often unknown directly. Loyalty cards and similar systems can be used to track customer spending patterns but these only give indicative data. Stock control is paramount since keeping too high stock levels causes larger storage costs and larger stock purchase costs.

Financial KPIs

  • Average Transaction Value (£ / transaction)
  • Gross Margin (%)
  • Average number of product lines sold / transaction
  • Sales / employee hour worked (£ / hr)
  • £ Wages / £ Turnover (%)

Customer KPIs

  • Number of customers
  • Customer Churn (%)

Warehouse / Logistics KPIs

  • Stock Cover (number of weeks) - This could be applied to all product lines or just specific critical ones
  • Stock Turn - the number of times / year that the full stock is sold
  • Number of stock lines out of stock in a particular month

Human Resources KPIs

  • Average days sick / employee
  • Average days off work due to accidents / employee
  • % staff turnover – number effective full time staff leaving

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