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TEXT

    Retail Directory: Key Performance Indicators<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Key Performance Indicators</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Performance_indicator" />
</span> (KPI) in retail industry<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">retail industry</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Retail" />
</span>

    Retail Directory

In this blog<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">blog</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Blog" />
</span> i am sharing my knowledge on retail industry. This blog will be useful for the one who is starting their carrier in retail.

Friday, July 17 , 2009

Key Performance Indicators (KPI) in retail industry

Customer Sales - Customer Cost of Goods Sold for a period

Face<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Face</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Face" />
</span> to face customer service staff count/total staff count

Sales Transaction Count per period/Visit Count Per<span itemscope itemtype="http://schema.org/Person">
        <span itemprop="name">Count Per</span>
</span> Period

Retail Financial KPIs

Avg Accts Payable/(Cost of Sales<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Cost of Sales</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Cost_of_goods_sold" />
</span>/365)


Avg Accts Rec/(Credit Sales/365)


Current Assets<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Current Assets</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Current_asset" />
</span> - Inventory<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Inventory</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Inventory" />
</span>)/Current Liabilities<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Current Liabilities</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Current_liability" />
</span>


Administration Costs<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Costs</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Cost" />
</span>/Sales<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Sales</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Sales" />
</span> )*100


Beginning of Period Inventory + End of Period Inventory)/2


Fixed Costs/Gross<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Gross</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Gross_profit" />
</span> Margin Percentage

Days Inventory Outstanding + Days Sales Outstanding + Days Payable Outstanding)


Total Sales<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Total Sales</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Sales_(accounting)" />
</span> - Variable Costs)


Retail Price<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Retail Price</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Price" />
</span> ? Markup<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Markup</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Markup_(business)" />
</span>)


Beginning Inventory + Purchases - Ending Inventory


Current Assets/Current Liabilities


Beginning Inventory - (Sales + Transfers out + Return to Vendor<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Vendor</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Vendor" />
</span> + Markdowns + Employee<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Employee</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Employment" />
</span> Discounts + Shrinkage) + (Purchases + returns from Customers<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Customers</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Customer" />
</span> + Transfers In + Markups)


Total Sales - Cost of Goods


Gross Margin $/Average Inventory Cost


Expenses<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Expenses</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Expense" />
</span> + Reductions+Profit)/(Net<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Net</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Net_income" />
</span> Sales +Reductions)


Interest Costs/Sales)*100


Net Sales/Average Inventory


Original Retail - Reductions) - Cost of Goods Sold


Retail Price - Cost)/Retail Price


Markup Amount/Retail Price


Purchases + Transfers in + Returns from Customers + Overages) - (Transfers Out + Return to Vendors)


Gross Sales - Returns and allowances


Cost of Goods + Markup


Profit for the Year/Capital<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Capital</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Capital_(economics)" />
</span> Employed)*100


Total Net Sales/Squarefoot of selling<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">selling</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Selling" />
</span> Space


Average Inventory/(Cost of Sales/365) number of days


Sales/Total Assets<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Total Assets</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Asset" />
</span>


Total $ Sales for season<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">season</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Season" />
</span>/Average $ Inventory for season


Posted by Chandru at 12:58 PM

Labels: BAM, Business Activity Monitoring, Calculating KPI, Customer KPIs, Definition of Key Performance Indicator, Financial KPIs, Five top KPI, Key Success Indicators, KPI, KSI, Use of KPI

Tarun August 23, 2011 at 7:06 PM

Thanks a lot !! Much needed info

Anonymous May 30, 2012 at 9:55 PM

Can you please provide sources for this information<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">information</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Information" />
</span>? Great post, I just need a little more hard resources rather than a blog website<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">website</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Website" />
</span>. I appreciate the posting and any additional information you can provide.

Best,

Jason

We have launched a job portal<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">job portal</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Job" />
</span> on employee referral<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">employee referral</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Employee_referral" />
</span> jobs in India. See www.joblagao.com<span itemscope itemtype="http://schema.org/Organization">
        <span itemprop="name">www.joblagao.com</span>
        <link itemprop="url" href="http://www.joblagao.com">
</span>

Anonymous<span itemscope itemtype="http://schema.org/Organization">
        <span itemprop="name">Anonymous</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Anonymous_(group)" />
</span> August 28, 2013 at 11:55 PM

Wow...now I'll know every answers...:)

Good informative post.

Anonymous August 3, 2014 at 12:53 PM

Can I have the retail Director's (KPI)?

Email<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Email</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Email" />
</span>: ula3h@Hotmail.com<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">Hotmail.com</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Domain_name" />
</span>

This is the first time i am reading your post and admire that you posted article<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">article</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Article_(publishing)" />
</span> which gives users lot of information regarding particular topic thanks for this share.
Mcx Commodity Trading Tips

Great article. Thanks for this wonderful post.

Hi, Can anyone please help me with templates/forms/examples of KPIs for FMCG industry<span itemscope itemtype="http://schema.org/Thing">
        <span itemprop="name">industry</span>
        <link itemprop="sameAs" href="https://en.wikipedia.org/wiki/Software_industry" />
</span>.