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Fashion Merchandising Metrics
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Style Sell Rate
Measures the popularity of a particular style or design; calculated by dividing the number of units of a style sold by the time it's been on sale.
Customer Retention Rate
Percentage of customers who return to buy again; calculated by dividing the number of returning customers by the number of total customers, multiplied by 100.
Conversion Rate
Shows percentage of visitors who buy something; calculated by dividing the number of purchases by the total number of visitors.
Monthly Traffic Growth Rate
Shows the percentage increase in store visitors month over month; calculated by subtracting the previous month's traffic from current month's, divided by the previous month's traffic.
Customer Satisfaction Score (CSAT)
Measures customer satisfaction with their purchasing experience; generally gathered through surveys on a scale of 1 to 10.
Stock to Sales Ratio
Compares inventory on hand to the number of sales; calculated by dividing the ending inventory by the sales for that same period.
Inventory Turnover
Reflects how often inventory is sold and replaced over a period; measured by dividing cost of goods sold by average inventory at cost.
Customer Lifetime Value (CLV)
Estimates the total revenue a business can expect from a single customer account; involves various metrics including average purchase value, purchasing frequency, and customer lifespan.
Foot Traffic
Counts the number of customers entering a store; measured using manual counting, sensors, or tracking software.
Shrinkage Rate
Calculates loss of inventory due to theft, error, or damage; measured by dividing the difference between recorded and actual inventory by the recorded inventory.
Days to Sell Inventory
Average number of days to sell an item after it's received; measured by dividing the number of days in the period by inventory turnover ratio.
Product Category Performance
Shows the strength of a specific category of products; measured by analyzing sales data, margin, and turnover within the category.
Sell-through Rate
Percentage of inventory sold in a given period; measured by dividing the number of units sold by the initial number of units available.
Stockout Frequency
Number of times stock is not available for sale; measured through inventory tracking systems and sales data.
Gross Margin Return on Investment (GMROI)
Evaluates inventory profitability; calculated by dividing gross margin by average inventory cost.
Sell-out Percentage
Measures the amount of inventory sold during a season; calculated as the total sold inventory divided by the sum of sold and unsold inventory.
Sales per square foot
Measures the efficiency of the sales space; calculated by dividing total net sales by the number of sales square footage.
Return on Investment (ROI)
Calculates overall profitability of merchandise; measured by dividing net profit by total investment in inventory.
Markup Percentage
The increase on the cost price of goods to create a selling price; measured by dividing the difference between the selling price and the cost price by the cost price.
Average Transaction Value (ATV)
Average amount spent per transaction; measured by dividing total sales by the number of transactions.
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