Sales KPIs

• Sales Revenue: Total revenue generated during a specific period. The most fundamental sales metric.
• Sales Growth: Increase in sales revenue over time, showing if you’re growing or shrinking.
• Average Transaction Value (ATV): Average amount spent per customer transaction. Increasing ATV drives larger sales.
• Units per Transaction (UPT): Average number of items purchased per transaction. Increasing UPT drives more revenue.
• Sales per Square Foot (for physical stores): Revenue generated per square foot of retail space. Helps assess store efficiency.

Customer-Focused KPIs

• Foot Traffic (for physical stores): Number of customers entering the store. Indicates your potential customer reach.
• Conversion Rate: Percentage of visitors (in-store or online) who actually make a purchase. Higher conversion makes your sales process more efficient.
• Customer Retention Rate: Percentage of customers who return for repeat purchases. Builds loyalty and repeat business.
• Net Promoter Score (NPS): Measures the likelihood of a customer recommending your store.
• Online Reviews: Monitor reviews on Google, Yelp, or industry-specific sites. Customer sentiment is invaluable.

Inventory KPIs

• Inventory Turnover Ratio: How frequently your inventory is sold and replenished. High turnover often indicates healthy demand and efficient stock management
• Sell-Through Rate: Percentage of inventory sold within a specific period. Helps identify slow-moving stock.
• 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. Lost sales and possible customer frustration.

Financial KPIs

• Gross Profit Margin: Percentage of revenue remaining after accounting for the cost of goods sold (COGS).
• Net Profit Margin: Percentage of revenue remaining after all expenses are accounted for. Measures overall profitability.
• Shrinkage: Loss of inventory due to theft, damage, or errors. A low shrinkage rate protects your profits.

Operations & Marketing KPIs

• Website Traffic (for online stores): Number of visitors to your online store. Indicates the reach of your online presence.
• Email Open/Click-Through Rate: Track the success of email campaigns to drive sales and engage past customers.
• Visual Merchandising & Display Effectiveness: For brick-and-mortar stores, track if changes to displays boost sales of featured items.

Additional Considerations

• Category-Specific KPIs: Analyze sales, inventory, and profitability by category (tops, denim, accessories, etc.).
• Seasonality KPIs: Track sales fluctuations due to seasonality, weather, and holidays. Crucial for inventory and staffing planning.