RETAIL

MARKETING:

ASSIGNMENT PAIRS
NAME: ABBAS AFZAL
SABAH KARIM
ID#: F2018005052
 F2018005111
SECTION: A
SUBMITTED TO: SIR ZEESHAN
DATE OF SUBMISSION: 04 JAN, 2022

QUESTION:

Please go through the following article. Identify 3 most

important KPIs in general for retail industry. What KPIs will be
relevant to online retailors?

ANSWER:

KPIs:

KPIs means “key performance indicators”. KPIs are the most

important thing in a business. If you want to run a successful
business so first you should make KPIs for your business.

RETAIL KPIS:

KPIS used to determine future goals and objectives of an

organization. Retail KPIs are is a clearly defined and quantifiable
measure that can be used to access the performance of a retail
business. KPIs help to see where you are standing in terms of
sales. Finance, growth of a business.
The 3 most important KPIs for retail industry.

o Sales per square foot.

o GMROI ( Gross margin return on investment)
o Customer retention

 SALES PER SQUARE FOOT:

The retail sales per square foot is a good indicators of store

productivity. This KPI help in productivity and growth of
business. This KPI also help to plan about your store layout and
stocks.

FORMULA:

Net sales/ amount of sales space.

This formula of sales per square foot helps you to determine

your sales.

 GMROI ( Gross margin return on investment)

GMROI (gross margin return on investment). This KPI measure

your profit return on the funds invested in stock. GMROI helps
you to tell about your how much money your inventory has made
and also tell about how much profit you should gain from this
inventory.

FORMULA:

Gross profit/ average inventory.

This formula of GMROI helps you to determine your profit margin
from your investment on your product.

 CUSTOMER RETENTION:

The retail KPI customer retention help to attract more or new

customer towards them. How to attract or find new customer.
This KPI will help you to know about customer services, product
performance and loyalty of a customer.

FORMULA:

((CE-CN/CS))*100

This formula of customer retention helps you to how to attract

more new customers.

ONLINE RETAILORS relevant KPIS:

The KPIS relevant for online retailers are:

 Sales per square foot

 Conversion rate
 Online sales relative to brick-and-mortar
 GMROI
 Customer retention

QUESTION:

Pick up 2 most important KPIS for the following brands:

 AL-FATAH:

AL-FATAH is a good retailor store. They are selling huge variety

of goods and services on their stores. They are selling all types
of product in their stores. The items they are selling is grocery
items etc.

TWO KPIS FOR AL-FATAH:

o Conversion rate.

Number of customers who purchasing goods and services from

the stores.

FORMULA:

Number of sales/ total number of visitors.

o Basket size/ items per transaction.

Number of items should be selling. How much profit you

gained.

FORMULA:

Basket size= total no. of units sold/ total no. of transactions

 HOWDY:

Howdy is a biggest food chain. This is the food shop. They are
selling good quality of product to their customers like they are
selling burgers etc. this is the international food chain.

TWO KPIS FOR HOWDY:

o Gross and net profit

The profit you are gaining after deducting the cost of creating
and selling goods and services.

FORMULA:
 Sales revenues- cost of goods sold.

o Customer retention.

To increase more new customer towards them.

FORMULA:

((CE-CN/CS))*100

 KHAADI

Khaadi is a good clothing retailer of women clothes. They selling

high quality of their products. They are selling large variety of
design clothes to their customer’s.

TWO KPIS FOR KHAADI:

o Sales per square foot.

Number of sales they are generating from their article displays

in the store.

FORMULA:

Net sales/ amount of sales space

o Conversion rate.

Number of customers who purchasing goods and services

from the stores.

FORMULA:

Number of sales/ total number of visitors.

 AFZAL ELECTRONICS.

Afzal electronics is the best shop for electronic items. They are
selling brands items like KENWOOD (all items related to
electronics like refrigerator, oven, AC etc.), HAIER, ORIENT.
TWO KPIS FOR AFZAL ELECTRONICS:

o GMROI

How much profit you are gaining from your investment. This KPI
help to increase profit on investment.

FORMULA:

Gross profit/ average inventory.

o YEAR OVER YEAR GROWTH (YOY)

To compare your year by year sales and profit from your

business.

FORMULA:

(Current period revenues- prior period revenues) / Prior

period revenue*100

THANKYOU