To Measure is your Treasure
The value of analysis is endless. What you can analyze is endless as well. Whether you are a startup business or operating your store for decades: It is all about data. The trick is to analyze the right data and translate outcomes to actions. Below are the basic elements you should include to your weekly Retail Analytics exercise:
- Best sellers and slow movers
- Average Transaction Value
- Space planning
- Profit per guest
- Stock: turnover, dead stock
- Return on investment of staff
- Effect of pricing and promotions
I use to say: It is not about the numbers, it is about the story behind the numbers. And my advice is to track the outcome whatever changes you make in your store (from Visual Merchandising to pricing strategy).
Personally Retail Analytics is one of my favorite assignments when consulting businesses. It is more or less a puzzle which you will solve by time. Some puzzles are easy to solve due to the size of the pieces and some take more time because the design is more complicated but at the end you will complete the task by fitting all the pieces together. In my retail blog I will write about analytics in general, tips and most common mistakes and of course the experience during my travels across Europe, Asia and Australia. If you want me to cover specific items just let me know! Feel free to check if I am available for a consultancy session.
Not all about finance!
Like the title says: It is not all about the financial performance. You must analyze the guest satisfaction level to constantly exceed the expectations (more on this during the Guest Experience blogs). And do not forget the happiness and performance of your team! Check out the Staff blogs for inspiration.