Retail Accounting

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KPIs for retailing

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Average Spend per Head   the total sales(£) divided by the total no. of customers.

Average Transaction Value (ATV)   the total sales (£) divided by the number of transactions.

Conversion Rate %   the percentage of customers who actually make a purchase from the shop. Divide total number of transactions by total no. of customers x 100.  The higher the % the better.

Gross Margin/Gross Profit   the difference between the price the customer pays for merchandise and the cost of the merchandise (from the supplier), expressed as a percentage of the sales price.

Mark up    the difference between the price the customer pays for merchandise and the cost of the merchandise (from the supplier), expressed as a percentage of the cost price.

Net Profit    gross profit less overheads and losses.

Gross Sales   the total £ revenues received from the sales of merchandise and services.

Sales per Square Foot  the total net sales divided by square feet of selling space.

Sales per Linear Foot of Shelf Space  the total net sales ÷ linear feet of shelving

Sales (%) by Product Category (or Department)  a category’s total net sales ÷ shop’s total net sales

Stock Turn    the rate at which a product sells over a period. The quantity sold during a period divided by quantity in stock during same period. (Note: poor stock turn could be due to high ordering not just low sales)

Stocklevel Ratio    the time it will take to sell through stock. The quantity in stock divided by the stock turn rate equals the number of weeks/months stock.

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Author: retailaccounting

CounterBooks is an online retail accounting management suite which is used by retailers across the world.

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