KPI report for retail chain stores in China

Transcription

1 Foreword About the KPI report The and the have collaborated and established the Key Performance Index System (hereafter the KPI system ) for retail chain operators in China since 27 and published reports on quarterly basis. The system aims to collect key performance indices of different format retail stores in China. In 29, the data collection system are further upgraded and revised, and more store samples have been added. The revised KPI report for 9Q3 covers over 1 retail stores in China of 5 major formats, including convenience stores, supermarkets, hypermarkets, department stores and home electronics appliance chains, of which supermarkets and hypermarkets are further divided into several categories by operating area for easier references. We hope this report can shed some light on the key development trends of China's retail chain stores. About the indicators Data of the following is collected in the KPI system 1. Monthly sales ( 月度銷售額 ) Pre-tax monthly sales value 2. Total operating area ( 總營業面積 ) Including self-operating area and leasing area 3. Leasing area ( 對外租賃面積 ) Area leased to other operators 4. Total staff number ( 員工總數 ) Total number of staff including dispatched employees hired by labor agents ( 勞務派 遣人員 ) 5. Total number of contract staff ( 正式員工數 ) Total number of staff hired directly by the retailers 6. Total operating cost ( 成本及費用總額 ) 7. Total salaries and wages ( 工資總額 ) 8. Total number of SKUs ( 單品總數 ) 9. Number of SKUs distributing directly through the distribution centre ( 統一配送單品數 ) 1. Average daily number of transactions ( 平均日交易數 ) 11. Inventory turnover days ( 庫存周轉天數 ) Average number of days for inventory to turnover once 12. Non-operating income ( 營業外收入 ) Income excluding sales of goods 1

2 Survey results by retail formats I. Convenience stores Average operating area: 16m 2 Average number of cash registers: 1 (i.e. 1 cash register for every 16 m 2 ) Monthly sales Average sales per m 2 (million yuan) Average sales per staff Average customer spending Cashier efficiency Gross margin (number of transaction/ Efficiency 1 (yuan/machine/day) 8,5 8, 7,5 7, 6,5 (yuan/machine/da y) Efficiency 2 (number of transaction/ (%)

3 Jul 9 Aug 9 Sep 9 Average 1. Monthly sales (million yuan) Average sales per m 2 3. Average sales per staff 4. Average customer spending 5. Cashier efficiency 1 (yuan/machine/day) Cashier efficiency 2 (number of transaction/ ,33 7,398 7,999 7, Gross margin (%) ) Inventory turnover days:11.1 days 8) Average operating area per employee ( 員工配置 ): m 2 /employee 3

4 II. Supermarkets (divided into 4 groups according to operating area) 1. Supermarkets (3-999 m 2 ) Average operating area: 527 m 2 Average number of cash registers: 4 (i.e. 1 for every 132 m 2 ) Monthly sales Average sales per m 2 (million yuan) Average sales per staff Average customer spending 1,6 1,55 1,5 1,45 1,4 1,35 1,3 1,25 1,579 1,495 1, Cashier efficiency Gross margin (number of transaction/ , 9,5 9, 8,5 8, 7,5 (yuan/machine/da y) (%) Efficiency 1 (yuan/machine/day) Efficiency 2 (number of transaction/ 13 4

5 Jul 9 Aug 9 Sep 9 Average 1. Monthly sales (million yuan) Average sales per m 2 3. Average sales per employee 4. Average customer spending 5. Cashier efficiency 1 (yuan/machine/day) Cashier efficiency 2 (number of transaction/ ,495 1,376 1,579 1, ,969 8,257 9,473 8, Gross margin (%) ) Inventory turnover days:23 days 8) Average operating area per employee ( 員工配置 ): 22 m 2 /employee 5

6 2. Supermarkets (1,-1,999 m 2 ) Average operating area: 1,365 m 2 Average number of cash registers: 8 (i.e. 1 for every 171 m 2 ) Monthly sales Average sales per m 2 (million yuan) Average sales per staff Average customer spending ,2 1, Cashier efficiency Gross margin (number of transaction/ Efficiency 1 (yuan/machine/day) 12, 11,5 11, 1,5 1, 9,5 (yuan/machine/da y) Efficiency 2 (number of transaction/ (%)

7 Jul 9 Aug 9 Sep 9 Average 1. Monthly sales (million yuan) Average sales per m 2 3. Average sales per staff 4. Average customer spending 5. Cashier efficiency 1 (yuan/machine/day) Cashier efficiency 2 (number of transaction/ ,2 1,13 1, ,329 1,397 11,721 1, Gross margin (%) ) Inventory turnover days:21 days 8) Average operating area per employee ( 員工配置 ): m 2 /employee 7

8 3. Supermarkets (2,-3,999 m 2 ) Average operating area: 2,745 m 2 Average number of cash registers: 15 (i.e. 1 for every 183 m 2 ) Monthly sales Average sales per m 2 (million yuan) Average sales per staff Average customer spending 2, 1,5 1, 5 1,269 1,42 1, Cashier efficiency Gross margin (number of transaction/ , 1, 5, (yuan/machine/da y) (%) Efficiency 1 (yuan/machine/day) Efficiency 2 (number of transaction/

9 Jul 9 Aug 9 Sep 9 Average 1. Monthly sales (million yuan) Average sales per m Average sales per staff 1,269 1,42 1,526 1, Average customer spending Cashier efficiency 1 (yuan/machine/day) 11,69 12,829 13,964 12,81 Cashier efficiency 2 (number of transaction/ Gross margin (%) ) Inventory turnover days:24 days 8) Average operating area per employee ( 員工配置 ): 2 m 2 /employee 9

10 4. Supermarkets (4,-5,999 m 2 ) Average operating area: 4,631 m 2 Average number of cash registers: 22 (i.e: 1 for every 211 m 2 ) Monthly sales Average sales per m 2 (million yuan) Average sales per staff Average customer spending 2, 1,5 1, 5 1,793 1,429 1, Cashier efficiency Gross margin (number of transaction/ , 2, 15, 1, 5, (yuan/machine/da y) (%) Efficiency 1 (yuan/machine/day) Efficiency 2 (number of transaction/ 12 1

11 Jul 9 Aug 9 Sep 9 Average 1. Monthly sales (million yuan) Average sales per m 2 3. Average sales per staff 4. Average customer spending 5. Cashier efficiency 1 (yuan/machine/day) Cashier efficiency 2 (number of transaction/ ,429 1,463 1,793 1, ,622 15,989 19,64 17, Gross margin (%) ) Inventory turnover days:3 days 8) Average operating area per employee ( 員工配置 ): 19 m 2 /employee 11

12 III. Hypermarkets (divided into 3 groups by operating areas) 1. Hypermarkets (6,-9,999 m 2 ) Average operating area: 7,728 m 2 Average number of cash registers: 33 (i.e. 1 for every 234 m 2 ) Monthly sales Average sales per m 2 (million yuan) Average sales per staff Average customer spending , , Cashier efficiency Gross margin (number of transaction/ ,5 1, 9,5 9, 8,5 8, 7,5 (yuan/machine/da y) (%) Efficiency 1 (yuan/machine/day) Efficiency 2 (number of transaction/

13 Jul 9 Aug 9 Sep 9 Average 1. Monthly sales (million yuan) Average sales per m 2 (yuan/m 2 /day) 3. Average sales per staff 4. Average customer spending 5. Cashier efficiency 1 (yuan/machine/day) Cashier efficiency 2 (number of transaction/ ,9 1,143 1, ,434 8,737 9,9 9, Gross margin (%) ) Inventory turnover days:27 days 8) Average operating area per employee ( 員工配置 ): 27 m 2 /employee 13

14 2. Hypermarket (1,-14,999 m 2 ) Average operating area: 1,676 m 2 Average number of cash registers: 27 (i.e. 1 for every 395 m 2 ) Monthly sales Average sales per m 2 (million yuan) Average sales per staff Average customer spending 1,5 1,45 1,4 1,35 1,3 1,25 1,2 1,15 1,1 1,5 1,434 1,393 1, Cashier efficiency Gross margin (number of transaction/ , 16, 15, 14, 13, 12, (yuan/machine/da y) (%) Efficiency 1 (yuan/machine/day) Efficiency 2 (number of transaction/

15 Jul 9 Aug 9 Sep 9 Average 1. Monthly sales (million yuan) Average sales per m 2 3. Average sales per staff 4. Average customer spending 5. Cashier efficiency 1 (yuan/machine/day) Cashier efficiency 2 (number of transaction/ ,199 1,393 1,434 1, ,592 15,792 16,255 15, Gross margin (%) ) Inventory turnover days:26 days 8) Average operating area per employee ( 員工配置 ): 35 m 2 /employee 15

16 3. Hypermarket (over 15, m 2 ) Average operating area: 18,431 m 2 Average number of cash registers: 47 (i.e. 1 for every 392 m 2 ) Monthly sales Average sales per m 2 (million yuan) Average sales per staff Average customer spending 1,55 1,5 1,45 1,4 1,35 1,48 1,526 1, ,3 72 Cashier efficiency Gross margin (number of transaction/ , 16,5 16, 15,5 15, 14,5 (yuan/machine/da y) (%) Efficiency 1 (yuan/machine/day) Efficiency 2 (number of transaction/

17 Jul 9 Aug 9 Sep 9 Average 1. Monthly sales (million yuan) Average sales per m 2 (yuan/m 2 /day) 3. Average sales per staff 4. Average customer spending 5. Cashier efficiency 1 (yuan/machine/day) Cashier efficiency 2 (number of transaction/ ,48 1,526 1,528 1, ,146 16,415 16,432 15, Gross margin (%) ) Inventory turnover days:37 days 8) Average operating area per employee ( 員工配置 ): 36 m 2 /employee 17

18 IV. Department stores Average operating area: 3448 m 2 Average number of cash registers: 62 (i.e. 1 for every 491 m 2 ) Monthly sales Average sales per m 2 (million yuan) Average sales per staff Average customer spending 2, 1,5 1, 5 1,356 1,56 1, Cashier efficiency Gross margin (number of transaction/ , 4, 2, (yuan/machine/da y) (%) Efficiency 1 (yuan/machine/day) Efficiency 2 (number of transaction/

19 Jul 9 Aug 9 Sep 9 Average 1. Monthly sales (million yuan) Average sales per m 2 3. Average sales per staff 4. Average customer spending 5. Cashier efficiency 1 (yuan/machine/day) Cashier efficiency 2 (number of transaction/ ,356 1,56 1,93 1, ,635 39,829 48,598 41, Gross margin (%) ) Inventory turnover days:72 days 8) Average operating area per employee ( 員工配置 ): 19 m 2 /employee 19

20 V. Home electronics appliance chains Average operating area: 14,36 m 2 Average number of cash registers: 16 (i.e. 1 for every 877 m 2 ) Monthly sales Average sales per m 2 (million yuan) Average sales per staff Average customer spending 5, 4, 3, 2, 1, 3,154 3,27 4,44 1,48. 1,46. 1,44. 1,42. 1,4. 1,38. 1, , ,46.5 1,36. Cashier efficiency Gross margin (number of transaction/ Efficiency 1 (yuan/machine/day) 1, 8, 6, 4, 2, (yuan/machine/da y) Efficiency 2 (number of transaction/ (%)

21 Jul 9 Aug 9 Sep 9 Average 1. Monthly sales (million yuan) Average sales per m 2 (yuan/m 2 /day) 3. Average sales per staff 4. Average customer spending 5. Cashier efficiency 1 (yuan/machine/day) Cashier efficiency 2 (number of transaction/ ,154 3,27 4,44 3,528 1, , ,46.5 1, ,17 57,733 84,2 67, Gross margin (%) ) Inventory turnover days:33 days 8) Average operating area per employee ( 員工配置 ): 47 m 2 /employee 21

22 Recent highlights of the retail chain operators 1. Strengthening fresh food sales capability Retailers are putting more efforts in strengthening their fresh food sales capabilities, which is increasingly regarded as an important source of profits. More and more retailers now self-operate their fresh food session instead of leasing the areas to other operators. The fresh food sourcing strategy also evolves: centralized sourcing increasingly replaces sourcing by individual stores. Besides, instead of sourcing from wholesalers, increasing number of retailers is now sourcing directly from farmers. This helps flatten the distribution system and lower distribution costs. As many domestic players mainly operate regionally, they have an edge in fresh food localized sourcing. 2. Development of community retail stores gaining momentum Residential communities are quickly gaining retailers attention alongside with the rapid increase of elderly consumers in China who are demanding more shopping convenience. This offers retailers ample business opportunities such as the offer of dining and domestic household services; many have also launched community promotion activities to stimulate community sales. 3. Improving supply chain efficiency Streamlining the supply chains is receiving increasing attention. It helps retailers lower transaction cost, improve turnover of goods and minimize the depreciation of goods, etc, and in the end contributing to increase in margin. Some hot discussions among retailers recently include the possibility of building sourcing alliance between retailers; cooperation with suppliers (e.g. CPFR development, i.e., Collaborative Planning, Forecasting and Replenishment ); improving logistics arrangement; and developing and improving information system etc. 22

23 About the Organizations The 中國連鎖經營協會 Founded in 1997, the (CCFA) is an official representative of the retailing and franchise industry in China. Currently, there are 8 enterprise members with 16, outlets, including domestic & overseas retailers, franchisers, suppliers, and relevant organizations. The total sales of China s Top 1 retail chain operators, which are part of the members of the CCFA, exceeded RMB 1.2 trillion in 28, with more than 12, stores in total. CCFA participates in policymaking and coordination, safeguards the interests of industry and members, provides a series of professional trainings and industry information and data for its members and establishes platforms for exchange and cooperation. Li & Fung Group 利豐集團 The Li & Fung Group is a Hong Kong-based multinational company with three distinct core businesses: export sourcing, distribution and logistics, and retailing. Founded in Guangzhou in 196, the Li & Fung Group achieved an annual turnover of around US$16.7 billion in 28. Today, the Li & Fung Group operates in some 4 countries and regions and employs over 35, people worldwide. One of its core competencies is Supply Chain Management (SCM). 利豐研究中心 is the research institute of the Li & Fung Group. It serves as a knowledge bank on China's economy, industries, logistics and distribution sector, with its research scope covering the whole spectrum of the entire supply chain, from ideas, production, distribution, retailing to consumers. It also offers research analyses and consulting services to colleagues and clients to assist them in their day-to-day decision-making. Copyright 29 and the (CCFA). All rights reserved. Though and CCFA endeavor to have information presented in this document as accurate and updated as possible, it accepts no responsibility for any error, omission or misrepresentation., CCFA and/or their associates accept no responsibility for any direct, indirect or consequential loss that may arise from the use of information contained in this document. Reproduction or redistribution of this material without and CCFA s prior written consent is prohibited. 23