RETAIL

MARKETING:

ASSIGNMENT (INDIVIDUAL)
NAME: ANUM KHAWAR
ID#: F2018005199
SECTION: B
SUBMITTED TO: SIR ZEESHAN
DATE OF SUBMISSION: 28 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