Friday, August 7, 2009

What are some of the right key performance indicators which can be used to track store performance ? 7 dimensions

In the retail sector, it is very important to optimize store on multiple dimensions .

What are the various dimensions on which a store needs to be optimized ?

There are 7 dimensions on which a store performance can be tracked. They are

1. Merchandising : Do I have the right mix of products/categories in my store ?)

2. Shelf space optimisation : Have I laid this mix out optimally across shelves - at eye level, above eye level, below eye level, near checkout counters for impulse buying etc ?)

3. Pricing : How is my store doing vis a vis alternative stores in 2-3 mile radius ?

4. Footfall : How many shoppers are visiting my store ?

5. Basket profile : What is the average basket size ? What do they spend on ? Are some products cannibalizing others ?

6. Promotions : Which are promotions are driving sales to my stores

7. Supply chain : Do I have frequent stockouts ? Are some items not moving past 90 days ?

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