Running an independent retail business requires more than hard work and intuition—it also calls for careful tracking of performance. By monitoring the right metrics, you can make smarter decisions, reduce costs, and increase profitability.
1. Sales per Square Metre
For retailers with physical stores, this metric measures how efficiently your space generates revenue. It helps you evaluate whether displays are effective and whether some products deserve more prominent placement.
2. Average Transaction Value (ATV)
ATV shows the average amount a customer spends per visit. Tracking this helps identify opportunities for upselling or cross-selling, ensuring you get the most from every transaction.
3. Stock Turnover Rate
Knowing how quickly products move off your shelves highlights which items are in demand and which may be tying up cash unnecessarily. A healthy turnover rate ensures fresh stock, better cash flow, and fewer markdowns.
4. Customer Retention Rate
It costs far more to attract a new customer than to keep an existing one. Monitoring retention helps you measure the effectiveness of loyalty schemes, customer service, and overall satisfaction.
Final Thoughts
Tracking the right metrics gives you a clearer picture of your business’s health. It allows you to identify strengths, spot weaknesses, and take action before small issues become big problems. For independent retailers, this kind of insight is invaluable.
Need help deciding which metrics matter most for your business? We can help you focus on the numbers that drive real results.
For the latest retailer news and information, check out the IndiHub website or to speak to us about how we can help your business contact us.
