Retail KPIs Examples

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Examples of Retail KPIs

Retail Example KPIs

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A retail business consists of a complex set of objectives, with a number of aspects to keep track of. Having so much things to handle, it is easy to lose sight of your actual goals.

What can help you to achieve these goals better is the use of Retail Key Performance Indicators (KPIs). Such measures allow you to track the performance of every essential retail process.

Some of the most common KPIs used in managing retail performance are given below:

Inventory Turnover

Inventory turnover shows the amount of stock that is sold over a certain period. Low inventory turnover indicates that the business is not selling sufficient units of inventory, meaning that they might be overstocking, while high turnover indicates quick sellouts due to insufficient stocking.

In that case, a retail company can target to reduce this measure by a certain degree within a week or so.

Conversion Rate

The success of a retail business depends on its ability to convert visitors into paying customers. This conversion rate can be determined by tracking the number of sales enabled by each visitor to analyze the efficiency of your sales force. The goal should always be to increase this percentage of overtime.

Customer Retention

Every business enthusiast knows that it is your repeat or existing customers that make up the largest amount of profits because the cost of acquiring a new customer is much higher than catering to a current one.

Hence, customer retention is an important indicator of engaging in sales strategies. Retailers should aim to increase their customer retention percentage every year.


Like Inventory turnover, the sell-through rate is a measure of the amount of inventory sold against the amount purchased.

This KPI can help you identify profitable product lines from low-performing ones and thus enable you to make better sales decisions. A low sell-through rate calls for revamping your sales strategies and inventory management.

Average Transaction Value

This figure estimates the overall spending of customers on your products. Retailers seek high transaction values since it reflects that customers are buying a high number of products or a number of high-value products.

If you have a low transaction value, you might have to reconsider your product and pricing strategies as well as optimize your lead-to-customer cycle to attract profitable leads.

Sales Per Employee

Your sales team is the force that can drive store visitors to become actual customers. Hence, it is crucial to track the performance of each of your sales representatives and employees.

And this KPI is a measure of their performance in the form of revenue facilitated by each employee. Retailers need to set certain goals for every employee to increase the sales each day.

Sales Per Square Foot

Product presentation is a huge and impactful aspect of retail since it influences the purchase decisions of customers.

This is why tracking sales per unit area can help you understand the amount of revenue generated by certain retail spaces and aid you in regulating the costs behind the space for better returns.

Sales Growth

Every business strives to have a sustainable performance and continuous growth. In order to figure out whether your retail performance has improved, sales growth can provide some insights into how successful you are at achieving your goals and increasing your year-over-year growth.

Retail KPIs can guide you in tracking your business objectives and making smarter decisions. Tracking your performance can thus help you avoid any downfalls and accelerate your progress.


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