Store Operations & Kpis

Topics: Inventory, Marketing, Customer service Pages: 14 (2091 words) Published: September 3, 2011
Store Operations & KPIs p

 4 rules to improve performance and profitability in a store: 1. Grow sales 2. Lower the cost of goods sold 3. Improve margin by cutting overheads 4. Reduce 4 Red ce interest and inventory finance costs in entor

 Retailers with stores across multiple geographies and multi-channel operations  no direct contact with customers / distance between HQ and consumers 2

Lesson 8: Store Operations & KPIs p

 Performance Management helps decision-makers to reconnect with both consumers and key data  True performance management can have a significant impact on all four of these key metrics.  Flexible planning and reforecasting processes, effective data collection efficient transformation of data collection, into key metrics, standard and ad hoc reporting, and trend analysis are crucial for success. 3

Store Operations & KPIs p Performance Management
PLANNING Plans allow analysis of past results and definition of a baseline against which to measure performance They performance. help a business to set realistic, but stretching objectives.  High-Level Financial Plans Long range Long-range and detailed plans of the company’s financial company s goals, with flexibility and rolling forecasts to support the dynamic nature of retail. 4

Store Operations & KPIs p Performance Management
 Merchandise Plans Projected l P j t d sales and required i d i d inventory t meet t t to t targets in t i monetary terms, with average prices, margin and markdown to ensure profit. Sometimes space planning is profit an important component of this.  Marketing Plans Model scenarios, analyze evaluate promotion success scenarios analyze, success, and optimize promotional monies to drive profitable growth.


Store Operations & KPIs p Performance Management
 Store-Level Financial Plans Sales d inventory goals, l b and controllable S l and i t l labor d t ll bl expenses, reconciled to the High-Level Financial Plan for enterprise wide consistency. enterprise-wide consistency


Store Operations & KPIs p Performance Management
REPORTING  The challenge is to filter the data so that users can focus on just the information they need at a given time time.  Elements of the business that will be critical incl de b siness ill include:


Store Operations & KPIs p Performance Management
• • • • • • • • Store and channel operations Consumer behavior p g Competitive knowledge Labor productivity Supply chain p pp y performance Sales and margin trends y Inventory and cash flow Marketing promotions


Store Operations & KPIs p Performance Management
 Standard Reports Traditional fi T diti l financial statements such as Profit and L i l t t t h P fit d Loss, and trend reports such as Best Sellers. Each type of standardized report will have its own strengths for comparing numbers.  Actionable reports An actionable report eliminates content that requires little or no response. Instead, it highlights issues that need attention. Such reports can save hours of research and increase productivity. i d ti it 9

Store Operations & KPIs p Performance Management
 Dashboards • Easy to access reports in real-time showing all Key Performance Indicators. • Generally dashboards are role specific, showing a single screen with only data that pertains to an individual user for a quick and efficient perspective on daily trends.


Store Operations & KPIs p Key Performance Indicators
 Stores should have well defined KPIs that are linked to the store’s goals and broken down on a daily level. This enables everyone to easily see how well the store is performing against its goals.  In retail, the time cycle is very short and therefore reporting and controlling on a daily level is essential for efficient store management as it allows them to quickly pick-up and manage issues before they may have a major impact on profitability.  Timely and effective analytics is essential 11

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