retail math formula cheat sheet, Cheat Sheet of Retail Marketing

Download retail math formula cheat sheet and more Cheat Sheet Retail Marketing in PDF only on Docsity! Retail Formulas, Definitions and Examples KPI Measurement Formula Expressed As Example Sales Average Transaction Value Gross Sales / Number of Transactions Currency $25,550 / 1,200 = $21.25 Items per Transaction Number of Items Sold / Number of Transactions Number 3,800 / 1,200 = 3.16 Conversion Rate Number of Transactons / Footfall Percent 1,200 / 3,600 = 33.3% Sales per hour Gross Sales / Hours open for a period of time Currency $15,047 / 1,954 = Profit Gross Profit Sales - Cost of Goods (COGs) Currency $1,279,015-$778,025 = $500,990 Gross Profit Margin Gross Profit / Sales Percent $500,990 / $1,279,015 = 39.1% Net Profit Margin Net Profit (after tax) / Sales Percent $10,993 / $1,279,015 = .9% Maintained Gross Profit Gross Profit - Shrink Currency $500,990 - $50,990 = $450,000 Maintained Gross Margin Gross Profit (minus shrink) / Sales Percent $450,000 / $1,279,015 = 35.2% Employee Productivity Sales per Employee Sales / number of (full time equivalent) employees Currency $1,279,015 / 19.5 = $65,591 Sales per Payroll Hour Sales / Number of Payroll Hours Currency $1,279,015 / 741 = $1,726 Gross Profit per Employee Gross Profit / number of (full time equivalent) employees Currency $566,118 / 19.5 = $29,032 Employee to Customer Ratio Total Customers in Store / Total Employees in Store Ratio 18/3 = 6 Inventory Productivity Inventory Turnover Cost of Goods Sold / Value of Inventory Number $778,025 / $3,236,584 = 4.16 turns per annum Inventory Shrink Estimated Inventory Value - Actual Inventory Value (after physical count) Currency $3,236,584-$3,191,036 = $48,548 Inventory Shrink Percent Invneoty Shrink / Estimated Inventory Value Percent $48,548 / $3,236,584 = 1.5% Gross Margin Return on Investment (GMROII) Gross Profit Dollars / Average Inventory @Cost Currency $566,118 / $168,673 = $3.36 Open to Buy at Retail Planned Sales + Planned Markdowns + Planned End of Month Inventory - Planned Beginning of Month Inventory Currency $1,279,015 + $50,000 + 1,225,000 - 1,300,000 = $1,254,015 Open to Buy at Cost Open to Buy at Retail x Average Gross Margin of Profit Currency $1,254,015 X 39.1 = $490,319 Return on Assets - Before Tax & Interest Net Profit (EBIT) / Total Assets Percent $17,395 / $523,037 = 3.3% - After Tax & Interest Net Profit (after tax) / Total Assets Percent $10,993/$523,037 = 2.1% Return on Net Assets (RONA) Net Profit (after tax) / Net Assets Percent $10,993 / $176,168 = 6.2% Space Productivity Sales per Store Sales / Number of Stores Currency $1,279,015 / 2 - $639,508 Sales per Sq. Foot - Selling area Sale/Selling Space (excludes all but sales floor) Currency $1,279,015 / 10,000 - $127.90 - Total area Sales / Total Store Space Currency $1,279,015 / $17,500 = $73.09 Gross Profit per Sq. Foot - Selling area Gross Profit / Selling Space Currency $566,118/10,000 = $56.61 - Total area Gross Profit / Total Space Currency $566,118/17,500 = $32.35 Transactions per Sq. Foot - Selling area Toal Sales Transactions / Selling Space Ratio 25,140 / 10,000 = 2.51 - Total area Total Sales Transaction / Total Space Ratio 25,140 / 17500 = 1.44