RETAILS ABCD..

 Cost

Price (C. P.)

 MRP (Maximum Retail Price) Gross Sale Net Sale Gross Margin Gross Margin % Mark up Mark Down Flat Price
MAX TRAINING PROGRAM

COST PRICE (C.P.)

Is the price at which the merchandise was bought from the vendor.

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MRP ( MAXIMUM RETAIL PRICE)

Is the price at which the merchandise is sold at store OR Is the price customer pays to buy a merchandise

MRP = GROSS SALE VALUE

MAX

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NET ON TAX (NOT) or NET SALE VALUE

Price after deducting taxes (sale tax , VAT, service tax) and discounts (if applicable)

FORMULA : NOT = GROSS VALUE TAX VALUE

Eg. If MRP = Rs. 499 , Taxes = 10% Tax Value = (499 * 10)/100 =Rs. 49.9 NOT = 499 49.9 = Rs. 449

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GROSS MARGIN Overall margin or profit made on a merchandise. Formula : Gross Margin = MRP CP or Gross Margin = Gross Value Cost Price

Eg. : If C.P. = Rs. 240 , MRP = Rs. 400 Gross Margin = 400 240

= Rs. 160

MAX

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GROSS MARGIN % Overall profit% made on the merchandise Formula : Gross Margin % =
MRP - CP C. P. 100

Eg. : If C.P. = Rs. 240 , MRP = Rs. 400 400 -240 Gross Margin % = 240
MAX TRAINING PROGRAM

100

= 66.6%

KEY PERFORMANCE INDICATOR (KPI)

 Walk-

ins

 No. of Bills (NOB) Conversion % Average Cash Memo (ACM) Average Basket Size (ABS) Per Piece Value (PPV) Sales Per Square Foot (SPF)

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WALK INS

Total number of customers walking inside the store.

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NUMBER OF BILLS (NOB)

Total cash memos / bills / invoices made in a day.

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CONVERSION % % of customers who purchased from the store . Formula : Conversion % =

NOB Walk - ins 100

Eg. : If NOB = 200 , Walkins = 500 200 Conversion % = 500

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100 = 40 %

MAX

AVERAGE CASH MEMO (ACM) Average bill value per customer Formula : ACM =
Sale Value NOB

Eg. : If sale value = Rs. 42000 , Walkins = 70 42000 ACM % = 70

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= Rs. 600

MAX

AVERAGE BASKET SIZE (ABS) Average quantity sold per customer Formula : ACM =
Sale Value NOB

Eg. : If sale value = Rs. 48000 , Walkins = 60 48000 Avg Basket Size % = 60
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= Rs. 800

MAX

PER PIECE VALUE (PPV) Average price of each merchandise Formula : PPV=
Sale Value Qty Sold

Eg. : If sale value = Rs. 48000 , Qty Sold = 160 48000 Conversion % = 160
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= Rs. 300

MAX

SALES PER SQUARE FOOT (SPF) Sale value generated on per square foot Formula : SPF=
Sale Value Area

Eg. : If sale value = Rs. 7200 , Qty Sold = 360 7200 Conversion % = 360
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= Rs. 20

MAX

TARGET SETTING
 Contribution%

 ROS/Day Trading Days

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WTD

(Week Till Date)

MTD

(Month Till Date)

YTD STD
MAX

(Year Till Date)

(Season Till Date)

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CONTRIBUTION % % Contribution of each department Formula : Contribution % =

Store Sale Value Department Sale Value 100

Eg. : If Dept Sale Value = Rs. 51000 , Store sale value = Rs. 170000

51000 Contribution % = 170000

100 = 30 %

MAX

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RATE OF SALE (ROS) Average qty sold on each day Formula : ROS =
Total Sold Qty Days

Eg. : If Sold Qty = Rs. 156 , Days = 12 156 Conversion % = 12

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= 13

MAX

HOW STOCK REACHES TO THE STORE

VENDOR

MRDC Mumbai Regional Distribution Center

MGRN Manual Goods Receipt Note

Inspection Process

GRN Goods Receipt Note

STN Stock Transfer Note

LR Lorry Receipt

Inwarded at Store

MAX

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Stock n Sale Performance Indicators

Closing Qty Sold Qty MRDC Qty  STN Date  Trading Days  Sell Through  Cover Days  Effective Options Effective Qty Effective Cover Days FMS SMS
MAX TRAINING PROGRAM

Sold Qty =

Total qty sold in a month/ season

Closing Qty =

Remaining Qty available in the store

MRDC Closing =

Qty available in warehouse

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STN DATE

Is the date on which merchandise arrived in store

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Trading Days
Refers to number of days the merchandise is on floor Or. Number of days since 1St STN Date

Formula : Trading Days =

Current Date STN Date

Eg. : If STN Date = 20th July 09 , Current Date = 28th July 09 Trading Days % =
28th July 09 - 20th July 09

= 8 days

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Sell Through% % of qty sold of the qty received Formula : Sell Thru% =
Sold qty Sold qty + Cls Qty 100

Eg. : If sold qty = 200 , closing = 300 200 Conversion % = (200 + 300 )
MAX TRAINING PROGRAM

100 = 40 %

Cover Days
Number of days in which the stock quantity on floor will get finished .

Formula : Cover Days =

Closing Qty ROS

Eg. : If Closing Qty = 258 , ROS = 6 258 Cover Days = 6

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= 43

MAX

Effective Option
If no. of pcs available in an option is 50% of prepack qty or more.

For Eg.

option A
Prepack qty = 12 Cls qty = 8

option B
Prepack qty = 12 Cls qty = 4

Effective qty Effective option

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Effective Closing Qty

Closing Qty of all effective options

For Eg.

option A
Prepack qty = 12 Cls qty = 8

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Effective Cover Days

Number of days in which the effective cls quantity on floor will get finished .

Formula : Cover Days =

Effective Closing Qty ROS

Eg. : If Eff Closing Qty = 258 , ROS = 6 258 Cover Days = 6

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= 43

MAX

Count how many apples are there in the basket You eat 5 apples a day, in how many days you will empty the entire basket
MAX

= 40 =8

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MAX

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