You’re achieving the optimal results for this metric. Your business processes in this area are highly efficient and stand out against competitors. Keep investing in this area to maintain these results.
Sales Per Square Foot
Sales per square foot has been a common benchmarking metric in the retail industry for decades, and although the introduction of ecommerce has made it less so, it’s still critical for retailers offering successful omnichannel experiences that include brick and mortar locations. The metric helps retailers make the right resourcing decisions and understand the proper mix of ecommerce to physical location investments.
Providing an exceptional in-store customer experience can make or break your retail business. More satisfied customers results in return visits and increased sales. To track these experiences, retailers are using new and innovative technology like QR codes on receipts linking to online surveys, survey kiosks, and the increasingly popular HappyorNot machines. Better access to this data gives you insight on how your customers view the in-store experience and provides suggestions on areas for improvement.
Inventory turnover is a critical metric in determining a retailer’s inventory efficiency and sales effectiveness. A higher merchandise turnover indicates more sales in a given period, resulting in lower storage costs and more effective purchasing. Inventory turnover for retailers varies greatly depending on the type of product sold (perishable v. non-perishable, hard v. soft goods, etc.), and as seasonal demand changes. Another important component to consider when defining inventory turnover goals is the gross margin on the sale of your products. Keep in mind that lower margin items require more frequent turnover to meet revenue targets.
Marketing as a %
as a % of
SG&A Cost as a %
IT Costs as a %
Source(s): APQC, WERC, IR 500, Finlistics