Retail Formulas, Definitions and Examples

Retail Formulas, Definitions and Examples

KPI Measurement

Formula

Expressed As

Example

Gross Sales / Number of Transactions

Number of Items Sold / Number of Transactions

Number of Transactons / Footfall

Gross Sales / Hours open for a period of time

Currency

Number

Percent

Currency

$25,550 / 1,200 = $21.25

3,800 / 1,200 = 3.16

1,200 / 3,600 = 33.3%

$15,047 / 1,954 =

Sales - Cost of Goods (COGs)

Gross Profit / Sales

Net Profit (after tax) / Sales

Gross Profit - Shrink

Gross Profit (minus shrink) / Sales

Currency

Percent

Percent

Currency

Percent

$1,279,015-$778,025 = $500,990

$500,990 / $1,279,015 = 39.1%

$10,993 / $1,279,015 = .9%

$500,990 - $50,990 = $450,000

$450,000 / $1,279,015 = 35.2%

Sales / number of (full time equivalent) employees

Sales / Number of Payroll Hours

Gross Profit / number of (full time equivalent) employees

Total Customers in Store / Total Employees in Store

Currency

Currency

Currency

Ratio

$1,279,015 / 19.5 = $65,591

$1,279,015 / 741 = $1,726

$566,118 / 19.5 = $29,032

18/3 = 6

Cost of Goods Sold / Value of Inventory

Estimated Inventory Value - Actual Inventory Value (after physical count)

Invneoty Shrink / Estimated Inventory Value

Gross Profit Dollars / Average Inventory @Cost

Planned Sales + Planned Markdowns + Planned End of Month Inventory - Planned Beginning of

Month Inventory

Open to Buy at Retail x Average Gross Margin of Profit

Number

Currency

Percent

Currency

$778,025 / $3,236,584 = 4.16 turns per annum

$3,236,584-$3,191,036 = $48,548

$48,548 / $3,236,584 = 1.5%

$566,118 / $168,673 = $3.36

Currency

Currency

$1,279,015 + $50,000 + 1,225,000 - 1,300,000 = $1,254,015

$1,254,015 X 39.1 = $490,319

Net Profit (EBIT) / Total Assets

Net Profit (after tax) / Total Assets

Net Profit (after tax) / Net Assets

Percent

Percent

Percent

$17,395 / $523,037 = 3.3%

$10,993/$523,037 = 2.1%

$10,993 / $176,168 = 6.2%

Sales / Number of Stores

Currency

$1,279,015 / 2 - $639,508

Sale/Selling Space (excludes all but sales floor)

Sales / Total Store Space

Currency

Currency

$1,279,015 / 10,000 - $127.90

$1,279,015 / $17,500 = $73.09

Gross Profit / Selling Space

Gross Profit / Total Space

Currency

Currency

$566,118/10,000 = $56.61

$566,118/17,500 = $32.35

Toal Sales Transactions / Selling Space

Total Sales Transaction / Total Space

Ratio

Ratio

25,140 / 10,000 = 2.51

25,140 / 17500 = 1.44

Sales

Average Transaction Value

Items per Transaction

Conversion Rate

Sales per hour

Profit

Gross Profit

Gross Profit Margin

Net Profit Margin

Maintained Gross Profit

Maintained Gross Margin

Employee Productivity

Sales per Employee

Sales per Payroll Hour

Gross Profit per Employee

Employee to Customer Ratio

Inventory Productivity

Inventory Turnover

Inventory Shrink

Inventory Shrink Percent

Gross Margin Return on Investment (GMROII)

Open to Buy at Retail

Open to Buy at Cost

Return on Assets

- Before Tax & Interest

- After Tax & Interest

Return on Net Assets (RONA)

Space Productivity

Sales per Store

Sales per Sq. Foot

- Selling area

- Total area

Gross Profit per Sq. Foot

- Selling area

- Total area

Transactions per Sq. Foot

- Selling area

- Total area

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