Retail Industry KPI's : Theme

8/9/2019 Retail Industry KPI's : Theme

http://slidepdf.com/reader/full/retail-industry-kpis-theme 1/30

RETAIL KEY PERFORMANCE INDICATORS

Performance Metric / KPI

-Items per customer

Measures the ratio of opei! hours actua""# achie$e%& from tota" opei! h

( Pro%uct returs

Measures the $a"ue of the pro%ucts that )ere so"% a% reture% to the store

+ Pro%uct "ies so"% per trasactio

Measures the a$era!e um*er of items from %ifferet pro%uct "ies so"% o a

+ Out of stoc, pro%uct "ies

Measures the um*er of pro%uct "ies that are ot a$ai"a*"e i the store'

( Sa"e $a"ueMeasures the $a"ue of a customer *i""purchase& o a$era!e& )ithi the store

+ Customers per %a#Measures the a$era!e um*er of customers the store maa!es to attract o

+ .its so"% per customer Measures the a$era!e um*er of uits so"% *# the store o a per customer

+ /o"ume of purchase

Measures the $o"ume of items so"% per purchase& o a$era!e& *# t#pe of pro

0 Store "o#a"t#

-Tota" Sa"es

-Sa"es Per 1our

-A$era!e Sa"e

-I$etor# Tur

-A$era!e 2ross Mar!i

-Customers per %a#)ee,

0 P"ae% opei! hours achie$e%



Measures the um*er of times a customer $isits the store i perio%& o a$er

0 Perisha*"e items )ith past %ue %ateMeasures the perceta!e of perisha*"e items i a store that are past %ue %at

+ I$etor# to sa"es ratio 3ISR4

Measures the ratio *et)ee the retai"er5s i$etor# $a"ue a% the sa"es re$e

+ Net reta*"e area

( Si6e of !rocer# *i""Measures the a$era!e $a"ue of a !rocer# purchase trasactio'

+ StoresMeasures the um*er of stores the retai" compa# o)s or operates'

+ Time spet i the storeMeasures the "e!th of time spet& o a$era!e& i store *# prospecti$e custo

+ 2ross "easa*"e area per emp"o#ee

Measures the a$era!e amout of !ross "easa*"e area per emp"o#ee' 2ross "

( Emp"o#ee theft

( Shop"ifti!Measures the $a"ue amout of pro%ucts that )ere sto"e from the store'

( /e%or frau%Measures the $a"ue of frau% !eerate% *# the $e%ors' /e%or frau% ca *e

+ 2ross "easa*"e areaMeasures the f"oor area %esi!e% for teat occupac# a% e7c"usi$e use' It

( Sa"es per uit area

Measures the $a"ue of sa"es %i$i%e% *# the retai" space& o a$era!e per uitMeasures the perceta!e of store space a$ai"a*"e for se""i! pro%ucts& from

Measures the perceta!e of "o#a" customers& from a"" store customers' Loyaattributes, such as size of purchases, time spent in store and frequency of p

+ Fre8uec# of store $isits

building walls excluding common areas such as lobbies, corridors, eleand other such rooms not actually available to tenants for their furnishiwalls.

forms! pilfering, larceny, embelement, re"using #nowledge, materials,organiation$s benefit.



0 Top se""i! items

Measures the perceta!e of the sa"es from the top se""i! items from !ross

( Net cash f"o) per customer

Measures the remaii! *a"ace per customer after %e%ucti! cash outf"o)s

0 Sa"es *# pro%uct cate!or#

Measures the perceta!e of sa"es !eerate% *# a pro%uct cate!or# from o$e

( Sa"es per "a*our hour Measures the a$era!e amout of sa"es per "a*or hours )or,e%'

0 Out of stoc, items

Measures the perceta!e of a%$ertise% or %isp"a#e% items& either i a *ric, a

+ Stoc, ,eepi! uits i portfo"io

0 Sa"es !ro)th i stores ope at "east 9: moths

Measures the perceta!e of the sa"es $a"ue $ariace i stores ope for at "e

0 Same store sa"es !ro)th

Measures the perceta!e of the sa"es $a"ue $ariace& compare% )ith the pr

( O*so"ete stoc,

Measures the $a"ue of i$etor# items that )ere rep"ace% *# a a"terati$e a

+ Aticipatio stoc,

+ Reor%er poit 3ROP4

Measures the "e$e" of i$etor# at the poit )here a e) or%er shou"% *e p"a

+ Safet# stoc,

Measures the "e$e" of e7tra stoc, that is maitaie% *e"o) the c#c"e stoc, to

Measures the um*er of stoc, ,eepi! uits that e7ist i the portfo"io of pro%uit 3SK.4 refers to a item that is ui8ue %ue to certai characteristics 3si6ei%etificatio um*er i the i$etor#'

+ ;or,i! stoc,

stoc# and safety stoc#. It is formed by products that are arriving infre'

fre'uent but small"'uantity demands.

Measures the stoc, ,ept at ha% to meet seasoa" f"uctuatios i %ema% orpro%uctio'



+ Stoc, rotatiosMeasures the um*er of stoc, cha!es or rotatios %uri! a %esi!ate% peri

0 Store satisfactio )hi"e shoppi!Measures the proportio of shoppers that state the# are satisfie% )ith their s

0 Sa"es or%er cace""atio rateMeasures the ratio of sa"es or%ers that are cace""e% )ithi a !i$e time peri

( Stoc, $a"ueMeasures the $a"ue of the e7isti! stoc, at the e% of the moth'

( Sa"es re$eue per hour

Measures the sa"es re$eue achie$e% o a hour"# *asis& as a a$era!e'

0 Store co$ersio rate

Measures the perceta!e of sa"es trasactios from the potetia" customers

0 Mar,%o) !oo%s

Measures the perceta!e of pro%ucts so"% at mar,%o) prices& from a"" the

( Cost of !oo%s so"% 3CO2S4

Measures the cost of the mercha%ise so"% )ithi a !i$e time perio%'

( Sa"es *# %epartmet

Measures the sa"es re$eue achie$e% *# each %epartmet& resposi*"e for

+ Se""i! opportuities

Measures the um*er of shoppers that $isit the store& creati! se""i! opport

0 Se""-throu!h

Measures the ratio of pro%ucts that are so"% from the *e!ii! i$etor#'

0 Pro%uct she"f-space profita*i"it#Measures the profita*i"it# of the pro%uct re"ati$e to the amout of space it us

Sa"es per hour < Statica""# compares oe sa"es perso )ith the other a% %e

A$era!e Sa"e < Statica""# compares the a$era!e se""i! price of a sa"es pers

Items Per Sa"e < %etermies the a*i"it# of a sa"es perso compare to sa"e'



Customer 2ROSS Profit = Customer Sa"es - Customer Cost of 2oo%s So"%

Customer Lifetime Purchase /a"ue - Moetar# $a"ue of each customer5s "ife t

Customer Profita*i"it# = Customer Sa"es - 3Customer Returs - Customer C

Customer Purchase Fre8 Cout - Cout of customer purchases trasactios

Customer Purchase /a"ue - Moetar# $a"ue of each customer purchase %uri

Customer Referece 8uestio - A rati! from ? to 9? that i%icates if the cust

Customer Ser$ice Staffi! = Face to face customer ser$ice staff cout tota"

/isit to @u# Ratio = Sa"es Trasactio Cout per perio% /isit Cout Per Per

Accouts Pa#a*"e Turo$er = A$! Accts Pa#a*"e 3Cost of Sa"es B4

Accouts Recei$a*"e Turo$er Da#s = A$! Accts Rec 3Cre%it Sa"esB4

Aci% Test Ratio = 3Curret Assets - I$etor#4Curret Lia*i"ities

A%mi Cost 0 = 3A%miistratio Costs Sa"es 49??

A$era!e I$etor# = 3@e!ii! of Perio% I$etor# > E% of Perio% I$etor

@rea,-e$e 3(4 = Fi7e% Costs 2ross Mar!i Perceta!e

Cash Co$ersio C#c"e = 3Da#s I$etor# Outsta%i! > Da#s Sa"es Outsta

Cotri*utio Mar!i = 3Tota" Sa"es - /aria*"e Costs4

Cost of 2oo%s = 3Retai" Price < Mar,up4

Co$ersio Rate < sho)s ho) ma# customers the# ha$e ma%e from the $i

;a!e to Sa"es Ratio < !i$es a !raph compari! the hour"# )a!es of a sa"es

Customer Sa"es *# Se!met - This formu"a is %epe%et upo %efii! cust"ifest#"e& icome a% other factors4 a% associati! i%i$i%ua" customers to s



Cost of 2oo%s So"% = @e!ii! I$etor# > Purchases - E%i! I$etor#

Curret Ratio = Curret Assets Curret Lia*i"ities

2ross Mar!i = Tota" Sa"es - Cost of 2oo%s

2ross Mar!i Retur O I$estmet = 2ross Mar!i ( A$era!e I$etor# C

Iitia" Mar,up = 3E7peses > Re%uctios>Profit43Net Sa"es >Re%uctios4

Iterest Cost0 = 3Iterest Costs Sa"es49??

I$etor# Turo$er = Net Sa"es A$era!e I$etor#

Maitaie% Mar,up ( = 3Ori!ia" Retai" - Re%uctios4 - Cost of 2oo%s So"%

Mar!i 0 = 3Retai" Price - Cost4 Retai" Price

Mar,up 0 = Mar,up Amout Retai" Price

Net Receipts = 3Purchases > Trasfers i > Returs from Customers > O$er

Net Sa"es = 2ross Sa"es - Returs a% a""o)aces

Retai" Price = Cost of 2oo%s > Mar,up

Retur o Capita" I$este% = 3Profit for the Year Capita" Emp"o#e%49??

Sa"es per s8uare foot = Tota" Net Sa"es S8uarefoot of se""i! Space

Stoc, Turo$er Da#s = A$era!e I$etor# 3Cost of Sa"es B4 um*er of %

Tota" Asset Sa"es Ratio = Sa"es Tota" Assets

Turo$er = Tota" ( Sa"es for seaso A$era!e ( I$etor# for seaso

E%i! I$etor# At Retai" = @e!ii! I$etor# - 3Sa"es > Trasfers out >Discouts > Shri,a!e4 > 3Purchases > returs from Customers > Trasfers





!

ustomer Serv !e'

"inance / #urc

e& from o$era"" items i store' !

"inance / #urc

ue'

$%ecutive Man

Sales / ustom

$%ecutive Man

ustomer Serv mers 3for the purpose of shoppi!4' !

$%ecutive Man

easa*"e area represets the f"oor area %esi!!

Operations / St

Operations / St

Operations / #

%e"i$eri! the )ro! amout of i$etor# o t !

&'( / $%ecutiv

is primari"# use% i retai" ceters a% shoppi!

area' The uit of area is usua""# s8uare meter $%ecutive Mano$era"" store space' !

lty should be defined based on severalrchase.

ator shafts, stairwells, and rest roomsngs or to personnel and their enclosing

etc. for purposes other than the



Sales

a"es'

Sales / "inance

from the cash if"o)s for each customer' !

&'( / Sales

ra"" !ross sa"es' !

"inance / Sales

#urchase / "in

% mortar or o"ie shop that are o "o!er a !

)nventory Mana

&'( / $%ecutiv

ast 9: moths& compare% )ith the pre$ious sa!

$ious sa"es $a"ue performace' &'( / $%ecutiv

% )ere re%ere% uusa*"e or %imiishe% i $#urchase / "in

#urchase / "in

#urchase / "in

!

#urchase / "in

ce% )ith supp"iers to *ri! the i$etor# up' !

#urchase / "in

*uffer a!aist stoc,-outs' Safet# stoc, e7ists !

ucts or the retai"er5s offer' A stoc, ,eepi!& co"or& *ra%& etc'4 a% has a ui8ue

ently and in large 'uantities, to meet

to meet the shortfa""s cause% *# erratic



#urchase / "in

o% of time& as oe of the most importat ru"es !

ustomer Serv

oppi! e7periece )ithi the store& from a"" !

Sales / Operati

o%'

"inance / #urc

Sales

ustomer Serv

that $isite% the store' !

Sales / Store

ro%ucts so"%'

#urchase / "in

$%ecutive Man

pro%uct or pro%uct cate!or#' !

ustomer Serv

uities'

#urchase / Sal

"inance / Oper

s'

Sales / Operati

Sales / Operati

Sales / ustom

termies )ho is efficiet i se""i! a% atte%i

o' The hi!her statistics sho)s that the perso



Sales / Marketi

"inance / Sales

or a perio% "inance / Sales

ime purchases from the retai"er "inance / Sales

st of 2oo%s So"% > Customer Promotio E7p "inance / Sales

o$er a perio% of time Sales / Marketi

! a perio% )ith a a$era!e $a"ue for a"" purc Sales / Operati

omer )ou"% recomme% the store' ustomer Serv

$%ecutive Man

staff cout Operations / St

io% Sales / ustom

"inance / #urc

"inance / #urc

"inance / $%ec

"inance / Oper

#4: "inance / #urc

"inance / $%ec

%i! > Da#s Pa#a*"e Outsta%i!4 "inance / Oper

"inance / Oper

"inance / #urc

itors of the store'

perso to hour"# sa"es the# ha$e ma%e' This

mer se!mets 3*ase% o a!e& e%ucatio&pecific se!mets'



"inance / #urc

"inance / $%ec

"inance / Store

"inance / #urc

ost "inance / $%ec

"inance / Oper

"inance / *reas

"inance / Oper

"inance / Oper

"inance / Oper

"inance / Oper

a!es4 - 3Trasfers Out > Retur to /e%ors4 Sales / ustom

Sales / Strateg

Sales / #urcha

Strategy / "ina

Sales / &'( /

a#s "inance / #urc

"inance / $%ec

Sales / Marketi

etur to /e%or > Mar,%o)s > Emp"o#eeI > Mar,ups4



esponsible

ns

ns

ns

tomer Service

tomer Service

re Management

ce / Operations

ase / Store Management

er Service

tomer Services

er Service


ce



ce


ase

gement / Operations

er Service

gement / Strategy

ce

gement / Strategy / Operations

re Management

re Management

rchase

Management

gement / "inance



/ Operations

nce / Store Management

gement / #urchase / "inance

Management / Sales

Management / Sales









ce / Operations

ns

ase

ce / Sales

anagement / Operations

nce

gement / Sales

ce

s / Operaitons

tions / &'(

ns

ns

er Service



g

g

ns

ce

gemet / Strategy / Sales

re Management

er Service

ase

ase

tive Management

tions

ase

tive Management

tions

tions

ases



ases

tive Management

Management / #urchase

ases

tive Management

tions

ury

tions

tions

tions / Sales

tions / Sales

er Service

es

ce / $%ecutive Management

perations

ases / Operations

tive Management

g / Store Management



KPI Theme *ollowup TimelineRe$eue

Re$eue

Re$eue

Re$eue

Profita*i"it#

Customer Satisfactio

Profita*i"it#

Cost Efficiec#


Re$eue

Procuremet

Re$eue

Customer Satisfctio @usiess De$e"opmet

Re$eue

Procuremet





Procuremet PR

Asset Efficiec#

@usiess De$e"opmet

@usiess De$e"opmet

@usiess De$e"opmet


@usiess De$e"opmet

Asset Efficiec#

Asset Efficiec#

Asset Efficiec#

@usiess De$e"opmet

@usiess De$e"opmet Eari!s







Profita*i"it#

Profita*i"it# Cost Efficiec#









Customer Satisfactio Lo#a"t#

Li8ui%it# Cash Co$ersio


Li8ui%it#


Asset Efficiec#

Cost Efficiec#


Cost Efficiec#

Cost Efficiec#





KPI +urrent Target ctual )esul -ariance +omments











Documents

Retail Industry KPI's : Theme