If you want to know what’s going on in your business without guessing, look at the metrics. It’s the best way to get a pulse on your success or lack thereof. Start with reviewing the retail sales metrics, as well as inventory and customer data.
Today, we take a look specifically at the 5 key retail sales metrics for any business. Remember, your point-of-sale (POS) system will be a valuable resource as you pull the truth about your retail business.
1. Retail Sales Metrics Per Employee
Measuring each individual employee’s sales is great for helping you make future decisions about hiring, scheduling and compensation. Use your POS system to track employees, come up with sales targets, and determine your best team members.
2. Gross and Net Profit
These key indicators will ultimately tell you at the end of the day how much you actually made. Gross profit is the sales revenue minus the cost of goods sold. Net profit is all revenues minus all expenses. By allowing your POS to track these numbers, you can pull up the data at any time and make smart decisions about product sourcing or operation expenses.
3. Average Transaction Value
This metric tells you how much customers are spending on average per transaction. Higher numbers could mean they are purchasing higher priced items or large quantities. A low average transaction value might mean you need to consider new sales tactics like cross selling or upselling.
4. Year Over Year Growth
Are you growing? The best way to track year over year growth is to measure the current year’s results against the previous year’s results. This is a good indicator of how your business is doing and you can take action as needed.
5. Sales Per Square Foot
To figure out your store productivity start with sales per square foot. Calculate this by taking your net sales and dividing it by the amount of sales space. (Do not include your stock room or fitting rooms.) This will tell you if you are making good use of your space and can help with planning out store layout and merchandise.
After you review these key retail sales metrics how is your business doing? What changes do you need to implement? Was your POS software able to help you pull all this data? If not, consider a Bepoz Retail POS system. It’s one of the most advanced reporting systems in the point-of-sale industry. Schedule a demo with us today!