How to measure your retail store’s success

If you run a retail store, then you most likely need to know exactly how successful the store is. However, trying to understand your store’s success level can be difficult. Luckily, there are a number of retail metrics that can help you to understand the retail success level of your store. Here is a closer look at some of these metrics.

1. Number of customers

The higher this number is, the more successful your retail store is likely to be. This is because the more customers that you have, the more money is likely to be spent at your store. If your store is an e-commerce store, then you can easily monitor the number of customers that you are getting through analytics. If your store is a brick and mortar store, then you can track the amount of transactions made in your store.

2. Average sale value

This metric lets you know what the average sale value is for purchases made in your store. This metric lets you know roughly how many customers you need to be profitable. You can calculate the average sale value by taking the total sales value of all of your sales and dividing it by the number of transactions. This can help you gain very important insight into your customers’ purchasing habits at your store.

3. Gross profits

Gross profits tell you how much money your business is actually making. Gross profits are not the same as revenue. Gross profits are calculated as total sales minus the cost of generating the sales. The cost of generating the sales is subtracted because you need to make more than these costs in order to make money. Whatever you have left after you subtract the sales costs from the total sales value is the money that you get to pocket. The higher this number is, the more retail success that you are having. Gross profit is a highly important retail KPI or key performance indicator.

4. Loyalty factor

Loyalty factor is another retail KPI that is extremely important. This retail metric measures how loyal your customers are to your business in the long term. Loyalty factor is calculated by multiplying the number of purchases over the past 12 months by total sales/months since last purchase. The result will let you know how loyal your customers are. This can help you figure out what your sales may be in the future.

Conclusion

Certain retail metrics can give you key insight into how well your business is performing. The metrics listed in this blog are all very helpful for this purpose. Once you analyze the results of these metrics, you should have a good indication as to whether or not your business is on the right track.

Karin Jakovljevic

About the author

Karin Jakovljevic

Karin Jakovljevic is the head of marketing at Ximble, a powerful, cloud-based workforce management system, simplifying employee scheduling and time tracking for retailers, restaurants and small businesses.

Success Stories

Case Study: Property Management

Discover how Ximble helped Armstrong Property Management optimize scheduling, improve time tracking, and integrate with existing software.

Case Study: Urgent Care

Read how Montefiore needed a user friendly employee self-management solution that supported multiple locations and integrations.

Case Study: Restaurant

How did Rudy’s Pub & Grill tackle managing multiple locations over multiple devices, while increasing employee access to shift availability?

Case Study: Customer Services

Effectively scheduling a global workforce across multiple time zones with ease requires a dynamic approach. So how did Ximble help Touch Support?

Try Ximble for 14 days free

No credit card required. Cancel any time.

close close
close close