Monitoring and measuring performance results are key functions of any successful Retailer. Office PerformancePoint Server 2007 enables business users to define and use scorecards and key performance indicators (KPIs) to drive accountability and alignment across the organization.
Rich visualization and up-to-date performance dashboards and scorecards help business users align their actions with strategic goals.
Some retail KPIs are listed below. Look for a complete list of Retail KPIs at http://www.nrf-arts.org
Retail Customer KPIs
Customer GROSS Profit = Customer Sales - Customer Cost of Goods Sold for a period
Customer Lifetime Purchase Value
Monetary value of each customer's life time purchases from the retailer
Customer profitability
Customer Profitability = Customer Sales - (Customer Returns - Customer Cost of Goods Sold + Customer Promotion Expenses + Activity Based Cost of Servicing Customer) for a period
Customer Purchase Freq Count
Count of customer purchases transactions over a period of time
Customer Purchase Value
Monetary value of each customer purchase during a period with an average value for all purchases for the period
Customer Reference question
A rating from 0 to 10 that indicates if the customer would recommend the store.
Customer Sales by Segment
This formula is dependent upon defining customer segments (based on age, education, lifestyle, income and other factors) and associating individual customers to specific segments.
Customer Service Staffing
Face to face customer service staff count / total staff count
Visit to Buy Ratio
Sales Transaction Count per period / Visit Count Per Period
Accounts Payable Turnover
Avg Accts Payable / (Cost of Sales / 365)
Accounts Receivable Turnover Days
Avg Accts Rec / (Credit Sales/365)
(Current Assets - Inventory)/Current Liabilities
Admin Cost %
(Administration Costs / Sales )*100
Average Inventory
(Beginning of Period Inventory + End of Period Inventory)/2
Break-even ($)
Fixed Costs / Gross Margin Percentage
Cash Conversion Cycle
Days Inventory Outstanding + Days Sales Outstanding + Days Payable Outstanding
Contribution Margin
Total Sales - Variable Costs
Cost of Goods
Retail Price - Markup
Cost of Goods Sold
Beginning Inventory + Purchases - Ending Inventory
Current Ratio
Current Assets / Current Liabilities
Ending Inventory At Retail
Beginning Inventory - (Sales + Transfers out + Return to Vendor + Markdowns + Employee Discounts + Shrinkage) + (Purchases + returns from Customers + Transfers In + Markups)
Gross Margin
Total Sales - Cost of Goods
Gross Margin Return On Investment
Gross Margin $ / Average Inventory Cost
Initial Markup
(Expenses + Reductions+Profit)/(Net Sales +Reductions)
Interest Cost%
(Interest Costs / Sales)*100
Inventory Turnover
Net Sales / Average Inventory
Maintained Markup $
(Original Retail - Reductions) - Cost of Goods Sold
Margin %
(Retail Price - Cost) / Retail Price
Markup %
Markup Amount / Retail Price
Net Receipts
(Purchases + Transfers in + Returns from Customers + Overages) - (Transfers Out + Return to Vendors)
Net Sales
Gross Sales - Returns and allowances
Retail Price
Cost of Goods + Markup
Return on Capital Invested
(Profit for the Year / Capital Employed)*100
Sales per Square Foot
Sales per square foot = Total Net Sales / Squarefoot of selling Space
Stock Turnover Days
Average Inventory / (Cost of Sales /365) number of days
Total Asset Sales Ratio
Sales / Total Assets
Total $ Sales for season / Average $ Inventory for season