1. Sales per square foot: This metric measures how much revenue is generated per unit of selling space. It helps to evaluate the productivity of the store's layout and space utilization.
Formula: Sales per square foot = Total sales / Total selling space
2. Gross margin return on investment (GMROI): GMROI measures the profitability of inventory investment. It helps retailers identify which products are bringing in the most profit and adjust inventory levels accordingly.
Formula: GMROI = Gross margin / Average inventory investment
3. Sell-through rate: This metric indicates how quickly products are selling. A high sell-through rate is generally desirable as it means less inventory sitting on the shelf for long periods of time.
Formula: Sell-through rate = Units sold / Beginning inventory x 100
4. Inventory turnover: Inventory turnover measures how quickly a store sells through its inventory. A high inventory turnover rate suggests that a store is effectively managing its inventory levels and meeting customer demand.
Formula: Inventory turnover = Cost of goods sold / Average inventory
5. Stock keeping unit (SKU) productivity: This metric measures how effectively each product is selling. Retailers can use this metric to identify underperforming products and adjust their assortment accordingly.
Formula: SKU productivity = Sales / Number of SKUs
6. Category contribution: This metric evaluates the contribution of each category to the overall sales of the store. It helps retailers understand which categories are the most profitable and which might need more attention.
Formula: Category contribution = Category sales / Total store sales
7. Assortment breadth: This metric measures the number of product categories offered by the store. It helps retailers understand how broad their product offering is and whether they are meeting the needs of their customers.
Formula: Assortment breadth = Number of product categories
8. Assortment depth: This metric measures the number of product options within each category. Retailers can use this metric to evaluate whether they are offering enough variety within each category to meet customer needs.
Formula: Assortment depth = Number of product options within each category
9. Customer satisfaction: This metric measures how satisfied customers are with the products offered by the store. It can be used to identify areas of improvement in the assortment planning process.
Formula: Customer satisfaction = (Number of satisfied customers / Total number of customers) x 100
10. Market share: This metric measures the store's share of the total market. It can be used to evaluate the store's competitiveness in the market and to identify opportunities for growth.
Formula: Market share = (Store sales / Total market sales) x 100
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