8 Grocery Store KPI Metrics to Track and How to Calculate

A grocery store is a business with one simple goal: to sell the most groceries in the most efficient way possible. There are many ways to measure the success of a grocery store, but if you want to measure your performance against other stores, these key performance indicators (KPIs) should help you do just that.

1. Volume of customer traffic

The number of customers you have is an important metric for your grocery store. By tracking this information, you can see how many people come to the store on a weekly or monthly basis. You can also analyze repeat visits and new customers as well as calculate the number of customers per hour, day or week that pass through your doors.

This information can be useful in several ways. This will allow you to see how many customers enter the store daily or weekly, and how many of those customers are repeat customers. You will also be able to see if there is a correlation between having more customers and increasing sales in your grocery store.

2. Sales per square foot

This metric is calculated by taking a store’s total sales and then dividing it by the number of square feet. The average grocery store in the United States has a Sales Per Foot of 0. To calculate this metric, divide your total grocery sales by 100 times your total grocery store square footage:

Sales per square foot = Total sales / 100 * total square footage

3. Sales per hour

You can calculate sales per hour by dividing your store revenue by the number of hours you were open.

For example, if you have a store that had ,000 in sales over a weekend and you were open for 10 hours on Friday and Saturday, your average sales per hour would be 00 (,000 / 20 ).

To calculate this metric for each day (weekday or weekend), you will need to sum up all the individual days in a week or month. This will give you an average amount spent on your groceries per hour during those times.

To get an overall picture of how your grocery shopping is doing through all the hours throughout the year, you can use yearly figures by multiplying the months x 12 – that way, when compiling data to From multiple locations, it’s easier to compare apples to apples (so to speak).

4. Average basket size

Average basket size (average items purchased per customer)

The Average Cart Size is the average number of items purchased per customer. You can calculate this metric by dividing total sales by the number of customers who purchased at your grocery store. By tracking this metric, you will be able to compare how much your customers are buying and if that has changed over time. This will allow you to see if price changes or promotions have influenced how much they buy when shopping with you. You can also use this metric as a benchmark for other stores in your area or even past years so you know what kind of performance is expected from your business and its competitors.

The average cart size will tell you how much your customers are spending at the store. If this number increases, it means your prices are competitive and people are willing to spend more money on their groceries. If this number drops, you may need to adjust your prices so that they are still affordable for your customers but also profitable for yourself.

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5. Gross profit margin

Gross margin is the difference between revenue and cost of goods sold. It measures how much money a company makes selling its products.

Gross profit margin can be calculated by dividing gross profit by total sales, or it can be calculated as a percentage of revenue.

6. Inventory reversal

Inventory turnover is the ratio of inventory cost to sales, and it’s a measure of how fast your inventory turns over in a year. It works by dividing the cost of goods sold by the average inventory over a period of time.

In other words:

Inventory Turnover = (Annual Cost of Goods Sold / Average Inventory)

For example, say you sell products at cost price with no built-in profit margin: if you spend on each product and then sell 100 of those products in a year, your annual cost of goods sold would be million ( * 0). If from that same batch of 100 units there were 50 left at the end of the year and 10 new purchased for next year’s business (comprising an average stock level), your total annual turnover would be 50/10 = 5 times a year, i.e. once every five weeks.

7. Withdrawal Percentage

Shrinkage is the term used for stolen or lost products in stores. It can also refer to damage, deterioration and mistakes made by employees.

One way to measure shrinkage is to look at the difference between what you get paid for an item and the amount you actually receive from customers when they purchase it.

As an example: let’s say we buy a dozen eggs for .00 at our grocery store and then sell those eggs for each at our grower stand. After factoring in overheads like labor and electricity (but not taxes), we make a 20% net profit on our sales ().

Withdrawal percentage = (actual quantity sold – actual quantity received) / actual quantity sold × 100

8. Employee turnover rate

Employee turnover rate is the percentage of employees who resign or leave their jobs. It is also known as the “churn rate” and it is expressed as a percentage. The higher this number, the more difficult it will be for you to keep up with the needs of your grocery store employees. Here’s how to calculate your grocery store’s employee turnover rate:

• Take 1/14 of your total number of employees each year and multiply that by 100%. If you have 20 employees, for example, that would be 2% (1/12 x 100%).
• Add all new hires during this period to get your final number.

An ideal turnover rate should be around 5-10%, but if yours is over 20% then you are losing money!

Grocery stores should track these key metrics to be successful.

Your grocery store needs to track these key metrics to ensure it succeeds.

• To calculate the number of dollars spent per transaction, divide the total amount spent in your store by the total number of transactions. For example, if a customer spends ,000 at one of your stores and there were 1,000 purchases that day, you can say that each transaction earned .
• To calculate the average basket size (the price you paid for the goods), multiply the average basket size by 100%. For example, if an item costs , multiply 1 x 100% = 100%. This means that every dollar spent brings 100 cents. This is important because knowing will help you make pricing decisions for new items and existing products based on what people are willing to pay for them!

Conclusion

After looking at these key grocery store KPIs, I hope you can see how important it is to track them. You can use them to identify areas where your business needs improvement and then work to fix those issues so your grocery store continues to grow in the future.