Retail Analytics: 20 KPIs Every Store Owner Should Track

What gets measured gets managed. Yet most retailers only track a handful of metrics, missing insights that could transform their business.

This guide covers the 20 most important retail KPIs, how to calculate them, and what benchmarks to aim for. Track these consistently, and you'll have a complete picture of your business health.

Sales Performance KPIs

1. Gross Sales

Total revenue before any deductions. The top-line number everyone knows.

Gross Sales = Sum of all transactions

Track: Daily, weekly, monthly, year-over-year

2. Net Sales

Revenue after returns, discounts, and allowances. More accurate than gross.

Net Sales = Gross Sales - Returns - Discounts - Allowances

Target: Net sales should be 90-98% of gross

3. Sales Per Square Foot

Measures how efficiently you're using retail space. Critical for rent negotiations.

Sales/SqFt = Net Sales ÷ Selling Square Footage

Benchmark: $300-500 for specialty retail, $800+ for high-performing stores

4. Average Transaction Value (ATV)

How much customers spend per visit. Key target for upselling efforts.

ATV = Net Sales ÷ Number of Transactions

Goal: Increase 5-10% through upselling and bundles

5. Units Per Transaction (UPT)

Items per purchase. Measures add-on selling effectiveness.

UPT = Total Units Sold ÷ Number of Transactions

Benchmark: 1.5-3.0 depending on category

Customer KPIs

6. Customer Lifetime Value (CLV)

Total revenue expected from a customer over their relationship with you.

CLV = Avg Order Value × Purchase Frequency × Customer Lifespan

Goal: CLV should be 3x+ customer acquisition cost

7. Customer Retention Rate

Percentage of customers who return within a period.

Retention = ((Customers End - New Customers) ÷ Customers Start) × 100

Benchmark: 20-40% for retail (varies by category)

8. Repeat Purchase Rate

Percentage of customers who've purchased more than once.

RPR = Customers with 2+ Orders ÷ Total Customers × 100

Target: 25-40% for healthy retail business

9. Customer Acquisition Cost (CAC)

How much you spend to acquire each new customer.

CAC = Total Marketing Spend ÷ New Customers Acquired

Goal: Keep CAC below 1/3 of CLV

10. Net Promoter Score (NPS)

Measures customer loyalty and likelihood to recommend.

NPS = % Promoters (9-10) - % Detractors (0-6)

Benchmark: 30-50 is good, 50+ is excellent

"We didn't track CLV until last year. Once we did, we realized our loyalty members were worth 4x more than one-time shoppers. Now we invest heavily in converting first-timers to members."

Inventory KPIs

11. Inventory Turnover

How many times inventory sells and is replaced annually.

Turnover = Cost of Goods Sold ÷ Average Inventory

Benchmark: 4-6x for apparel, 8-12x for grocery

12. Days of Supply

How long current inventory will last at current sales rate.

Days of Supply = Current Inventory ÷ Average Daily Sales

Target: Varies by item; typically 30-90 days

13. Stockout Rate

Percentage of SKUs out of stock at any time.

Stockout Rate = Out of Stock SKUs ÷ Total SKUs × 100

Target: Below 2%

14. Sell-Through Rate

Percentage of inventory sold during a period.

Sell-Through = Units Sold ÷ Units Received × 100

Target: 80%+ before markdown

15. Gross Margin Return on Investment (GMROI)

Profit generated for every dollar invested in inventory.

GMROI = Gross Margin ÷ Average Inventory Cost

Benchmark: $2-4 for healthy retail

Operational KPIs

16. Gross Margin

Profit after cost of goods, before operating expenses.

Gross Margin = (Revenue - COGS) ÷ Revenue × 100

Benchmark: 40-60% depending on category

17. Operating Margin

Profit after all operating expenses (rent, payroll, etc.).

Operating Margin = Operating Income ÷ Revenue × 100

Target: 5-15% for retail

18. Labor Cost Percentage

Payroll as a percentage of sales.

Labor % = Total Labor Cost ÷ Net Sales × 100

Benchmark: 10-20% depending on service level

19. Sales Per Labor Hour

Revenue generated per hour of staff time.

Sales/Hour = Net Sales ÷ Total Labor Hours

Goal: Optimize scheduling to maximize

20. Conversion Rate (Brick & Mortar)

Percentage of store visitors who make a purchase.

Conversion = Transactions ÷ Foot Traffic × 100

Benchmark: 20-40% for retail stores

Pro Tip: The Power of Combinations

Individual KPIs tell partial stories. Combine them for insights: High traffic + low conversion = merchandising or pricing issue. High ATV + low UPT = missing add-on opportunities.

Building Your Dashboard

Daily Review

Gross/Net Sales (vs. same day last year)
Transaction count
ATV and UPT
Labor hours scheduled vs. actual

Weekly Review

Sales by category
Stockout rate
Conversion rate
Top/bottom selling items

Monthly Review

Inventory turnover
Gross and operating margin
Customer metrics (retention, CLV)
Year-over-year comparisons

All Your KPIs in One Dashboard

Swipe Savvy includes real-time analytics with all 20 KPIs, custom reports, and automated insights.

See Analytics Demo

Conclusion

You don't need to track all 20 KPIs from day one. Start with the essentials (sales, margin, ATV, inventory turns) and add more as you mature. The key is consistency—review the same metrics regularly to spot trends and act on them.

Data without action is just numbers. Use these KPIs to guide decisions on pricing, staffing, inventory, and marketing. That's how analytics drives growth.