It is said that leadership is doing the ‘right things’, whereas management is doing things ‘right.’
When it comes to the corporate world, of course, not every businessman is a born leader. But anyone can be a great manager and make their business the leader in the industry. All that is required is sufficient knowledge and data to analyze and evaluate your organizational needs so as to make informed decisions in the best interest of your business.
However, in the retail business, this is easier said than done.
From handling the transactions and keeping track of the inventory to dealing with the customers; managing a retail business is a daunting task.
Usually, retailers will judge their organizational operations based on simple profit and loss calculations. But a net profit or loss is insufficient to decide whether your business is doing well or not; you need a much more detailed framework that targets different areas within your organization and gives you a comprehensive analysis of the overall business management and performance.
There are several other metrics that are used by the top retail brands to determine how their business is performing.
These metrics, called Key Performance indicators (KPIs), are used in various industries to gauge the efficiency of a company’s operations and the profitability of their buying and selling processes.
However, every KPI is not applicable to every business. Most KPIs are specific to a certain type of industry depending on what they measure and the results that they indicate.
To make your task easy, we have gathered the 25 most important KPIs used in the retail industry. So, whether you own a brick-and-mortar retail store, an online shop or a wholesale business, you can use these KPIs to keep track of your business performance and ease your management processes.
These KPIs have been categorized according to the different aspects of a retail business that they apply to.
Category: Sales and Revenue
1.Sales per Square Foot
Sales revenue is something that every businessman is bound to measure. But simply recording the ‘total sales’ is not enough if you want to make efficient use of the available resources in order to maximize your profits.
Measuring the sales per foot is one of the best ways to analyze the performance of your brick and mortar retail store.
As the name suggests, this KPI determines how much you earn for every foot of sales space. Simply divide the total revenue that you earn from sales by the total sales sp