Retail ef iciency Measurement

Metrics
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 Contents

• SSFPD ( sales per square feet per day)

• Average basket Size
• Average Bill Value
• Sell through
• Walk-in
• Conversion

 SPF

• A store space is 15000 sq feet.

• Retail space is 10000 sq feet.
• Average weekly sales is 28 lakhs
• Calculate SPF of the store.

 Walk-ins

• Number of people coming inside

the store is called walk-ins or
footfall.
• Either calculated manually or by
sensors placed at entrance.

 Conversion
• Q ) calculate daily conversion rate .

• Its calculated by number of bills

made / number of people who came Foo all No of bills Conversion
to your store . MON 400 230

• ( separate bills for carry bags are

TUE
WED
450
600
190
320
discouraged as it leads to an increase
THU 550 180
in number of bills and thus a ects
FRI 600 280
conversion calculations.
SAT 1200 360
SUN 1400 320
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 Average basket size
• Total qty sold divided by number
of bills made .

Average bill value

• Total Net sales divided by number

of bills made.
 Sell through analysis

It is a comparison between actual and planned sales to determine whether early markdowns are
required or whether more merchandise is needed to satisfy demand.

There is no rule that determines that a markdown is necessary.

It depends on experience with the merchandise in the past you are able to take decision related to
merchandise.

If actual sales stay ahead of planned sales, reorder should be done.

 Sell through percentage

The ratio of stock that was available as against what was sold .
Units sold/ unit on hand + units sold
Q) a stationery shops inds that they have sold 300 calendars
and have 125 left in the stock . What is the sell thru ratio?
= 300/425
= 71% approx