5 Key Sales Metrics To Any Retail Business
Today, we look explicitly at the 5 key retail sales metrics for any retail business. Keep in mind, your point of-offer (POS) system that will be a significant asset as you pull reality about your retail business.
1. Retail Sales Metrics Per Employee
Measuring every individual staff sales is incredible for helping you make on future decisions about employing, scheduling and compensation. Use your POS system to follow staff, think of sales targets, and decide your best team members.
2. Gross and Net Profit
These key indicators will ultimately let you know toward the day`s end the amount you actually made. Gross profit is calculated as the difference between sales revenue and cost of goods sold. Net benefit is the difference between all incomes and all expenses. By enabling your POS to track these numbers, you can pull up the data whenever and make smart decisions about product sourcing or operation costs.
3. Average Transaction Value
This metric reveals you how much customers are spending on average per transaction. Higher numbers could mean they are buying higher valued items or huge quantities. Low average transaction value may mean you have to consider new sales strategies like cross selling or upselling.
4. Year Over Year Growth
Is it fact to say that you are growing? The best way totrackis to measure year over year growth is to measure the present year`s outcomes against the earlier year`s outcomes. This is a decent indicator of how your business is doing and you can make a move as required.
5. Sales Per Square Foot
To figure out your store profitability begins with sales per square foot. Calculate this by taking your net deals and dividing it by the amount of sales space. (Try not to include your stock room or fitting rooms.) This will let you know whether you are making great usage of your space and can help with planning out store design and merchandise.