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Retail Performance is based on key principles adopted and tailored by retailers to gain competitive advantage and improve performance.

The basic principles will:

• Drive compliance with World Class Retail standards and practices

• Instill a customer focused, sales oriented culture throughout the organization

• Introduce a methodology for setting standards, tracking, measuring and reporting results, identifying under performance and coaching for success

• Reinforce World Class Retail standards in operations, management and sales and service practices throughout the business

• Bridge the gap between common sense and common practice

• Create a World Class Retail environment where it easier for your people to succeed than to fail

Retailers’ retail performance solutions include a dynamic blend of different consulting styles, training philosophies, coaching and mentoring. They provide customers with a proven methodology for driving retail success and the skills, knowledge and understanding to make it work, creating significant and sustainable increases in sales.

Knowledge Driven Success

Key to retail performance is the ability to measure actual versus planned individual sales and coach on undersupplied statistics. Companies are able to define Key performance indicators or KPI, set targets, and measure the performance of individuals, stores and areas within the business.

The retail rerformance system should provide relevant reports at all levels of the company, highlighting areas of poor performance and recommending the specific actions required to improve performance. With the correct information, managers are able to take quick and decisive action that results in a more responsive business and improved results.

KPI Measurement Methodology

Retail performance measurements are broken down into 2 main categories: Roster and Performance.

Staff Roster A Staff Roster should empower your front-line Store Managers (or H/O personnel) to do weekly Staff Rosters within the framework of the company’s strict wage budgets. Rostering within budgets is a retailer’s first opportunity to reduce operation expenditure – an expense within the control of the Store Manager.

Retail Sales Management Reporting The Retail Sales Management Reporting component of any turnkey solution should make all individual Salespeople accountable for their time, by setting them individual sales targets by shift within an overall weekly sales target framework and measuring and analysing their performance according to five (5) key KPIs.

With this information, Managers can target individual Salesperson’s weaknesses as their system will guide them as to which KPI to focus on first.

Being able to identify and then focus on the undersupplied KPI yields the greatest and quickest increase in each Salesperson's performance.

Retail performance adoption ideals

Retail performance adopters will keep the following ideal components in mind when implementing a methodology for success.

ROSTER within set company wage budget parameters. Managers should be able to see how much is left to spend as they add Salespeople to the Roster.

GENERATE SALES TARGETS by individual by day & by store by week. Managers should be able to show each Salesperson how much they expect them to make for the day(s) they work.

MEASURE individual sales performance compared to everyone on the shift. The Balanced Scorecard should tracks #Sales; #Transactions; #Items/Sale - versus Time Worked.

IDENTIFY undersupplied individual selling skills and trends. Managers should be able to view individual KPIs compared to the shift & store that identify individual focus needs.

FOCUS on 'the' selling skill that delivers the greatest value, quickest. Managers should be able to view ‘one-click’ focus tips about improving undersupplied KPIs and individual sales performance.

Which KPIs should be tracked?

A retail performance system should track at least five (5) Store and Individual Staff KPIs:

Sales per Hour - the fiscal value of the individual’s and stores hourly sales.

Items Per Sale - the number of items sold by individual compared to the store average.

Average Sale – the average fiscal value of each individual sale compared to the store average.

Conversion Rate - the number of walk-ins that can be converted to sales.

Sales per Wages Spent – the fiscal contribution each salesperson makes, or how much is spent on wages compared to how much they sold.

See also

Retailer

KPI

Key performance indicators

Sales