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Marco Suazo 02.16.2023 8 min read

The most common KPIs used in the retail industry

Key performance indicators (KPIs) are essential in the retail industry. They allow retailers to measure and track the performance of their business in critical areas such as sales, customer satisfaction, and inventory management. 

By regularly monitoring KPIs, retailers can identify trends and make data-driven decisions to improve their operations and profitability. For example, a retailer might track their sales per square foot as a KPI to determine which stores are performing well. Additionally, monitoring customer satisfaction through surveys or other methods can help retailers identify areas they need to improve. 

There are different metrics to track the performance of your business. It's essential to define which ones matter most. This article shares an overview of some of the most common KPIs used in the retail industry.



  1. Sales
  2. Gross Margin
  3. Same-store sales
  4. Inventory turnover


An overview of some of the most KPIs to measure success in Retail

1. Sales

This is one of the most critical KPIs for retail businesses, as it measures the total revenue generated. Sales drive profits and cash flow. It is a crucial marker of KPIs like market share and customer lifetime value (CLTV).

There are various ways to measure sales. One common way is by looking at total sales volumes (or dollar values), while another is by measuring profit margins (the difference between what you paid and what you sold).

This KPI measures the total revenue generated by the business. Businesses can break it down into categories: online sales, in-store sales, and sales by product.

2. Gross Margin

This KPI measures the cost of goods sold and the revenue generated. It helps determine the profitability of the business.

Retailers use this KPI to improve their operations and profitability by gaining insight into the relationship between revenue and costs. The gross margin percentage gets calculated by dividing gross profit (revenue minus the fee of goods sold) by revenue. Retailers can use gross margin KPI to:

  • Identify products or product categories contributing to higher or lower gross margins.
  • Negotiate better deals with suppliers to lower the cost of goods sold and increase gross margins.
  • Make decisions on pricing strategy, such as adjusting prices to increase gross margin or offering promotions to increase sales.

3. Same-store sales (SSS)

This KPI measures the sales performance of a retail store or chain over a specific period, usually a quarter or a year. It measures a store's performance without considering the effect of new stores or store closures. Retailers can use SSS to:

  • Identify trends in sales performance over time. By comparing SSS figures from quarter to quarter, retailers can identify trends in sales, such as growth or decline, and take action accordingly.
  • Benchmark performance against competitors. Retailers can compare their SSS figures to those of other retailers in the same market to gauge their performance.
  • Identify underperforming stores. By comparing SSS figures from store to store, retailers can identify which stores are performing well and which ones may be underperforming.

4. Inventory turnover

This KPI measures how quickly a retail business can sell its inventory. A high inventory turnover rate indicates that the company effectively manages its inventory.

Retailers can use inventory turnover to:

  • Identify slow-moving or overstocked items
  • Optimize inventory levels
  • Improve cash flow


Other commonly used KPIs to measure success in Retail


  • Customer traffic: This KPI measures the number of customers who visit the store. It is used to identify trends in foot traffic and determine the effectiveness of marketing campaigns.
  • Conversion rate: This KPI measures the percentage of customers who purchase after visiting the store. A high conversion rate indicates that the store effectively converts visitors into customers.
  • Average transaction value: This KPI measures the average amount spent per purchase. It helps identify customer spending trends and determine pricing strategies' effectiveness.
  • Employee turnover: This KPI measures the rate of employees leaving the company. It helps identify issues with employee satisfaction and retention.

Ultimately, KPIs are essential for measuring success and driving growth in the retail industry.

Save time spent on KPI management so you can focus on your sales goals

Key Performance Indicators (KPIs) play a crucial role in measuring success in the retail industry. They provide a clear and concise measurement of key areas such as sales and operational efficiency while helping managers track their progress and make informed business decisions.

Without KPIs, it would be difficult to determine the effectiveness of their strategies, allocate resources effectively, and make informed decisions to drive more sales.

Blitz is a proven solution for businesses in the retail industry. It offers an automated platform to keep track of sales performance and pay bonuses based on KPIs while solving complex commission schemes. Additionally, our automated platform centralizes all the information about regions, sales reps, and branches so you can keep all the data you need in one single place.

With Blitz, sales managers and directors will be able to:

  •  Obtain daily information through POS systems
  • Adjust and generate KPIs
  • Adjust bonus/goals by performance
  • Assign commissions by hierarchies/structures


Take the first step towards automated commission management in the retail industry! Learn more about how Blitz can help you streamline your business operations and drive growth with real-time insights and data-driven decision-making.