Retail Key Performance Indicators (KPIs)


Managers often refer to the measured outputs of a sales associate (or any employee) as Key Performance Indicators, or KPIs. That is, outcomes are measured in terms of key performance indicators.


Typical KPIs for retail sales professionals usually include:




  • Total sales

  • Sales Per person

  • Sales Per department/ category

  • Capture rate

  • Conversion rate

  • Average sale per customer

  • Gross margin on sales

  • Number of complaints

  • Customer satisfaction levels

  • Overs/unders (cashiers)

  • Cash: Credit sales

  • Debt days outstanding

  • Shrinkage

  • Stockturn


The big questions is, which one (or two) are the most important. I will use a subjective measure, and that is based on my personal experience with thousands of retailers over 25 years, all I can say is this:


I have never met a failing retailer that measured (and knew and used) :




  • The average sale

  • Stockturns


That might not be very scientific (n fact it is the equivalent of saying that have never met a failing retailer who owns a Dachshund either), but NO FAILURES is pretty compelling argument.