Retail Sales Benchmarks, KPI Definitions & Measurement Details
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1 The OpsDog Retail Sales Benchmarking Report Retail Sales Benchmarks, KPI Definitions & Measurement Details ABRIDGED CONTENT Purchase to View Full Benchmarking Report! 2017 Edition
2 Benchmarking Report Terms & Conditions The OpsDog Retail Sales Benchmarking Report 2017 OpsDog, Inc. The OpsDog Benchmarking Reports and their contents are protected by copyright laws, contain the trademark OpsDog, Inc., and are OpsDog s proprietary information. No part of this book shall be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording or otherwise, without written permission from OpsDog, Inc. OpsDog, Inc. assumes no liability with respect to the use of the information contained herein which is provided as is and there are no warranties of any kind provided by OpsDog with respect to this report. OpsDog assumes no responsibility for errors or omissions and will not be liable for any damages resulting from the use of the information contained herein. OpsDog, Inc Augusta Dr., Suite 200 Houston, TX Tel:
3 Report Details & Methodology The OpsDog Retail Sales Benchmarking Report More than 900 KPI values (i.e., data points) were analyzed to produce benchmarks for the 10 KPIs included in this report. 1 Data Range: Region(s) Included: United States, Europe The benchmarks included in this report were found to be comparable across companies of varying sizes (i.e., number of employees, total revenue) and industry segments. Benchmarks with notable differences across industries include industry average call-outs. Methodology: Data Collection & Validation 1. Gather OpsDog s analysis team aggregates data collected through traditional consulting engagements and targeted research. 2. Refine: Aggregated data is standardized, categorized and run through multiple validation checkpoints prior to being stored in our database 3. Package: We analyze and compile comparable data, then package our findings in the form of benchmarking reports and data sets. Looking for customized research and analysis? Contact our research team. P: E. info@opsdog.com Note: 1 The sample size of the observed data varies for each KPI. 2
4 Table of Contents The OpsDog Retail Sales Benchmarking Report Retail Sales KPIs Advertising Expense as a Percentage of Total Revenue Sales per Square Foot E-Commerce KPIs Bounce Rate E-Commerce Sales as a Percentage of Total Sales Percentage of Repeat Customers (E-Commerce) Shopping Cart Abandonment Rate Inventory Management KPIs Employees per Security Officer (Retail) Retail Security Expense as a Percentage of Sales Merchandising KPIs Coupon Redemption Rate Store Operations KPIs Customer Returns as a Percentage of Sales
5 Retail Sales Retail Sales E-Commerce Inventory Management Merchandising Store Operations Store Planning* * This section is not included in this document. Companies operating within the retail industry sell consumer goods (includes food, clothing, recreational items, etc.) to customers through multiple channels of distribution (brickand-mortar storefronts, e-commerce websites, direct mail catalogs, etc.). Retailers, a term typically applied where a company fills the small orders of a substantial number individuals (i.e., end-users) rather than large orders of a small number of wholesale, corporate or government clientele, are seen as the final link in the supply chain between manufacturers and consumers. Department stores, grocery stores and supermarkets, warehouse retailers, specialty retailers, convenience retailers, discount retailers, mobile retailers and e-commerce retailers (e.g., Amazon) all form part of the retail industry. Retailers are responsible for attracting customers to their retail locations (physical or web-based), providing an enjoyable shopping experience, and maintaining adequate inventories to meet customer demand. Retailers today are investing heavily in e-commerce strategies, not only to broaden their geographic reach, but to also keep up with advances in digital technologies and customer expectations, which have continued to transform the way that consumers search for and purchase goods of all types. 4
6 Sales per Square Foot Definition & Measurement Details What is Sales per Square Foot? The total dollar amount of sales generated by the company divided the number of square feet of retail space managed by the company over the same period of time. Why should this KPI be measured? Sales per Square Foot is a vital retail KPI that measures how effectively the company manages their retail space. A low value for this KPI may be indicative of a number of company issues, such as ineffective marketing/ branding strategy, poor reputation among consumers, inadequate use of retail space (i.e., using more space than is needed), substandard store layout, etc. Companies should analyze this metric on a regular basis to determine if sales strategy needs to be re-evaluated, storefronts should close down, or both. How is this KPI calculated? Two values are used to calculate this KPI: (1) the dollar amount of sales generated by the company (2) the average number of square feet of retail space managed by the company. Do not include any sales earned through the company s online or over-the-phone channels in the numerator of this calculation. To calculate the average square feet of retail space managed, add the total square feet of retail space at the beginning and end of the measurement period, and divide that number by 2. ABRIDGED CONTENT Purchase to View Full Definition & Measurement Details! Related KPIs Sales per Store, Average Transaction Size, Foot Traffic Formula Dollar Amount of Sales Generated / Average Square Feet of Retail Space Managed 5
7 Sales per Square Foot Benchmarks & Characteristics of High Performers Sales per Square Foot Dollar Amount of Sales Generated / Average Square Feet of Retail Space Managed Sales per Square Foot (USD) Top 5% Top 10% SAMPLE CONTENT Top 25% Median Bottom 25% Bottom 10% Bottom 5% Avg () Purchase to View Actual Benchmarking Data! Characteristics of High Performers KPIs are well-defined, tracked and tied to performance reviews Robust self-service options for customer (online FAQs, etc.) Agents cross-trained to handle and resolve multiple call types KPIs are well-defined, tracked and tied to agent performance reviews Sample Size: KPI Type: Unit: Is High or Low Best?: High Performers Low Performers How to read this chart: This chart summarizes the performance gaps between high (Top 5%), mid (Median) and low (Bottom 5%) performers for this Key Performance Indicator (KPI). For example, the column labeled Top 5% represents a company that outperformed 95% of the peer group observed for this metric. 6
8 Sales per Square Foot Benchmarks & Long Tail Analysis Sales per Square Foot Dollar Amount of Sales Generated / Average Square Feet of Retail Space Managed Sales per Square Foot (USD) SAMPLE CONTENT Purchase to View Actual Benchmarking Data! Avg () Min Top 25% Cut-off Median Bottom 25% Cut-off Max High Performers Low Performers How to read this chart: This chart plots all values within the observed population for this KPI. This chart can be useful in analyzing the upper and lower boundaries (i.e., minimum/maximum values) and the amount of the population that falls above/below the average for the KPI, among other things. 7
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