The modern retail industry has changed drastically from the days of brick and mortar thanks to the rise of eCommerce and how easy it is to access nearly anything you want, at any time. For retailers today, success is all about understanding consumer trends and adapting to changes that happen nearly every second.
If you operate a physical store, you understand how quickly things can change, and how important it is to measure every aspect of your business’ performance. The right metrics not only tell you how well your business is functioning, but can help identify areas for improvement, places where you can generate more savings, and even how to organize your store.
That’s why it’s crucial to:
KPIs are designed to tell a story about your business’ health and strategy success. As such, they’ll be slightly different from retailer to retailer, but they tend to cover the same ground. When it comes to retail, your retail analytics tools should track both raw sales in terms of inventory and speed, as well as how well you’re utilizing your physical space. The right combination of KPIs includes sales data, efficiency measures, and a healthy dose of inventory management metrics to help maintain your margins.