RETAIL FORMULA

RETAIL FORMULA

KPI MEASUREMENTS        FORMULA                                                                       EXAMPLE            

Average Transaction Value	Gross Sales / Number of Transactions	Currency	Rs.25,550 / 1,200 = Rs.21.25
Items per Transaction	Number of Items Sold / Number of Transactions	Number	3,800 / 1,200 = 3.16
Conversion Rate	Number of Transactions / Footfall	Percent	1,200 / 3,600 = 33.3%
Sales per hour	Gross Sales / Hours open for a period of time	Currency	Rs.15,047 / 1,954 =
Profit
Gross Profit	Sales - Cost of Goods (COGs)	Currency	Rs.1,279,015-Rs.778,025 = $500,990
Gross Profit Margin	Gross Profit / Sales	Percent	Rs.500,990 / Rs.1,279,015 = 39.1%
Net Profit Margin	Net Profit (after tax) / Sales	Percent	Rs.10,993 / Rs.1,279,015 = .9%
Maintained Gross Profit	Gross Profit - Shrink	Currency	Rs.500,990 - Rs.50,990 = $450,000
Maintained Gross Margin	Gross Profit (minus shrink) / Sales	Percent	Rs.450,000 / Rs.1,279,015 = 35.2%
Employee Productivity
Sales per Employee	Sales / number of (full time equivalent) employees	Currency	Rs.1,279,015 / 19.5 = Rs.65,591
Sales per Payroll Hour	Sales / Number of Payroll Hours	Currency	Rs.1,279,015 / 741 = Rs.1,726
Gross Profit per Employee	Gross Profit / number of (full time equivalent) employees	Currency	Rs.566,118 / 19.5 = Rs.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	Rs.778,025 / Rs.3,236,584 = 4.16 turns per annum
Inventory Shrink	Estimated Inventory Value - Actual Inventory Value (after physical count)	Currency	Rs.3,236,584-Rs.3,191,036 = Rs.48,548
Inventory Shrink Percent	Inventory Shrink / Estimated Inventory Value	Percent	Rs.48,548 / Rs.3,236,584 = 1.5%
Gross Margin Return on Investment (GMROII)	Gross Profit Dollars / Average Inventory @Cost	Currency	Rs.566,118 / Rs.168,673 = $3.36
Open to Buy at Retail	Planned Sales + Planned Markdowns + Planned End of Month Inventory - Planned Beginning of Month Inventory	Currency	Rs.1,279,015 + Rs.50,000 +  1,225,000 - 1,300,000 = Rs.1,254,015
Open to Buy at Cost	Open to Buy at Retail x Average Gross Margin of Profit	Currency	Rs.1,254,015 X 39.1 = Rs.490,319
Return on Assets
- Before Tax & Interest	Net Profit (EBIT) / Total Assets	Percent	Rs.17,395 / Rs.523,037 = 3.3%
- After Tax & Interest	Net Profit (after tax) / Total Assets	Percent	Rs.10,993/Rs.523,037 = 2.1%
Return on Net Assets (RONA)	Net Profit (after tax) / Net Assets	Percent	Rs.10,993 / Rs.176,168 = 6.2%
Space Productivity

Sales per Store                                                                  Sales / Number of Stores                                                                                       Currency                                                                                    Rs.1,279,015 / 2 - Rs.639,508

Sales per Sq. Foot

- Selling area                   Sale/Selling Space (excludes all but sales floor)      Currency      Rs.,279,015 / 10,000 - $127.90

- Total area  Sales / Total Store Space Currency      Rs.1,279,015 / Rs.17,500 = $73.09

Gross Profit per Sq. Foot

- Selling area                   Gross Profit / Selling Space                 Currency      Rs.566,118/10,000 = $56.61

- Total area  Gross Profit / Total Space                   Currency      Rs.566,118/17,500 = Rs.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