Business KPIs for Retail Growth

How exactly do you know how your store is performing?

Are you just guessing? Sure, you look at your bank account, hopefully your POS reports....and then?

One of the pillars of achieving sustainable growth in your retail store is understanding the levers your can pull that will drive success in your store.

That is only some of the benefits of business KPIs for your shop.

Despite their potential benefits, business KPIs are often misunderstood by Retailers. Let's debunk some common myths:

1. KPIs are only for big stores:

In reality, KPIs are equally valuable for small and medium-sized retailers.

They provide actionable insights that help retailers make informed decisions and drive growth.

2. KPIs are too complex:

While KPIs may seem daunting, they don't have to be overly complicated.

By focusing on a few key metrics that align with your stores objectives, retailers can gain valuable insights without getting lost in the details.

3. KPIs stifle creativity:

Contrary to popular belief, KPIs can actually foster innovation.

By providing a framework for measuring success, KPIs empower retailers to experiment and iterate while staying focused on their goals.

The reason why I loved KPIs when I had my pharmacies, was that I could quickly track and measure the metrics in my stores.

I could see how certain 'activities' were influencing outcomes.

For instance, did the sales training on Wednesday night have any impact in our average dollar sale for the next week?

Did the fact that we change suppliers influence our gross profit in any way?

As a retail business coach, working with my clients, the biggest barrier to implementing KPIs on a store level is the perceived complexity, that is why it is useful to have a coach (shameless plug!) that can walk you through step by step on how to pick the most importance things that will move the needle in your store.

From not having any KPIs at all to having too many, it can get overwhelming pretty quickly.

Like most things, business KPIs should be kept simple and should be visible for all to see!!

Once you get a grip on what is happening under the hood of your business, it makes business growth so much easier.

Do you use KPIs in your store?

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