Top Retail Store KPIs All Retail Managers Need to Know

Key performance indicators (KPIs) are an essential component to any business’ data analytics program. Companies can track hundreds of retail KPIs. Specific metrics will depend on the business model and industry, but operating a successful company requires deeper insight than year-over-year sales and gross margin.

In the brick-and-mortar retail industry, growth hinges on several angles of retail KPI analysis.

Let’s discuss how a self-serve retail analytics tool gives more granular insights on every KPI your retail org needs to evaluate to drive revenue and maximize profits.

  1. Average Customer Spend:
    One way to grow as a retailer is to acquire new customers. Another way is to retain existing ones. A third way is to increase how much the average customer—new or repeat—spends with you. But average customer spend might not tell us that much if it’s a true average of many locations and different types of customers. This is where ThoughtSpot’s search-driven retail KPI analysis tool can take over. Narrow down insights by searching for average customer spend by store, store departments, or even by fiscal quarter, month, or day.

  2. Sales Per Square Foot: One of the main challenges for brick-and-mortar retailers in developing a blueprint for efficient operations is that their stores are of varying sizes, layouts and features. For a large retailer with various locations across the country or world, sales per square foot can identify stores that aren’t carrying their weight. With an AI-powered analytic tool, this metric can easily be broken down further to analyze the sales of specific departments with how much of the store they occupy, informing layout developments in future store openings or remodels.

  3. Shoppers-to-Staff Ratio: A common metric of neglect in brick-and-mortars is conversion rate optimization (CRO). Of the various pairs of feet that walk into a store throughout the day, how many leave having made a purchase? It’s an essential metric to track and optimize for, yet, most physical retailers don’t have insight into their poor performance or how to make adjustments. A store’s shopper-to-staff ratio goes hand in hand with CRO, but it’s still not the whole story. What percentage of employees are doing tasks, and what percentage is servicing customers? How to average order totals throughout the day correspond with store staffing? How does shopper-to-staff compare across different store regions?

  4. A Tool to Aid Curiosity: The questions go on. Search-driven tools like ThoughtSpot lets users across an organization search for the answers they want, but take it a step further by uncovering data anomalies , detecting hidden patterns, isolating trends, and segmenting data in engaging charts and graphs to accelerate the knowledge-discovery process. We’re only scratching the surface here. Self-through rate? Product returns? Stock turnover rate? Dive deep into these KPIs, or what question that comes to mind, all without needing to rely on a team of data professionals.

Start a free trial today to learn what ThoughtSpot can bring visibility into your retail KPI analysis.

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