KPIs for Retail Stores
These are the KPIs a store or chain tracks for sales productivity, stock health and margin. They connect what is on the shelf to what is sold and what it earns.
The KPIs to track
Sales per square foot is how much revenue a store earns for each square foot of selling space.
Formula and SQL query on the Sales per Square Foot page.
Sell-through rate is the percentage of inventory received that has been sold in a period.
Formula and SQL query on the Sell-Through Rate page.
Inventory turnover shows how many times a business sells and replaces its stock in a period.
Formula and SQL query on the Inventory Turnover page.
Gross Margin Return on Inventory (GMROI)
GMROI shows how much gross margin you earn for each unit of money invested in inventory.
Formula and SQL query on the Gross Margin Return on Inventory (GMROI) page.
Shrinkage rate is the share of inventory value lost to theft, damage, error or spoilage between records and a physical count.
Formula and SQL query on the Shrinkage Rate page.
Units per transaction is the average number of items in each order or basket.
Formula and SQL query on the Units per Transaction page.
Store conversion rate is the share of people entering a physical store who make a purchase.
Formula and SQL query on the Store Conversion Rate page.
Same-store sales growth
The percentage change in sales from stores that were open in both the current and the comparison period, which removes the effect of opening or closing stores.
Where the data usually lives
A point-of-sale system, an inventory or stock system, a footfall counter and a finance system.
Measurement mistakes to avoid
- Compare stores of similar size and trading hours; a small store open late is not comparable with a large store open short hours.
- Markdowns raise sell-through and lower margin at once; read the two together.
- Stock counts timing changes shrinkage; make sure sales during the count are accounted for.
Questions to ask your data
You can type these as plain questions. SchemaChat turns each one into SQL against your connected database or uploaded file, runs it, and shows the SQL and the figures it used so you can check the answer before you share it. Check that the result matches how your business defines each KPI.
- Which stores earn the least per square foot?
- What is our sell-through rate by category this season?
- Which products have more than three months of stock?
- How did same-store sales change compared with last year?