Sales and Revenue KPIs

• Total Sales (Revenue): Total sales generated in a specific period (daily, weekly, etc.). This is your top-line sales metric.
• Sales Growth: Increase or decrease in sales compared to previous periods. Tracks overall business performance.
• Average Transaction Value (ATV): Average amount spent per customer transaction. Increasing ATV drives more revenue.
• Sales per Square Foot: Revenue generated per square foot of retail space. Helps assess sales floor efficiency.
• Sales by Product Category: Track sales for different categories (produce, groceries, household, etc.). Helps optimize inventory and promotions.

Customer-Focused KPIs

• Foot Traffic: Number of customers entering the store. Shows the potential customer reach.
• Conversion Rate: Percentage of visitors who make a purchase. Higher conversion means better sales techniques and product selection.
• Customer Satisfaction Surveys (CSAT): Measure satisfaction with store layout, product variety, prices, staff service, checkout experience, etc.
• Net Promoter Score (NPS): Tracks the likelihood of a customer recommending your store. Indicates customer loyalty.
• Repeat Customers: Percentage of customers who return for subsequent purchases. Builds a loyal customer base and repeat sales.

Inventory KPIs

• Inventory Turnover Ratio: How frequently inventory is sold and replenished. High turnover often indicates healthy demand and efficient management.
• Sell-Through Rate: Percentage of inventory sold within a specific period. Helps identify slow-moving vs. fast-moving items.
• Shrinkage: Loss of inventory due to theft, damage, or errors. A low shrinkage rate is desirable.
• Days Inventory Outstanding (DIO): Average number of days inventory is held before being sold. Shorter DIO indicates better cash flow.
• Stockouts: When a customer wants to buy an item but it’s out of stock. This leads to lost sales and frustration.

Financial KPIs

• Gross Profit Margin: Percentage of revenue remaining after the direct cost of goods sold (COGS) is accounted for.
• Net Profit Margin: Percentage of revenue remaining after all expenses are accounted for. Measures overall profitability.
• Operating Expenses as a Percentage of Sales: Helps control costs and maximize profitability.

Operational KPIs

• Basket Size: Average number of items purchased per customer transaction.
• Checkout Wait Time: Average time customers spend waiting in line. Minimizing wait times improves the customer experience.
• Staff Productivity: Track sales per employee or labor hours per transaction to help optimize staffing levels and scheduling.

Additional Considerations

• Promotional Effectiveness: Analyze sales lift from promotions and discounts. Helps optimize your marketing efforts.
• Seasonality: Track how sales fluctuate throughout the year due to holidays, events, or seasonal goods. Plan accordingly!