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Fashion Merchandising Metrics

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Style Sell Rate

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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.

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Customer Retention Rate

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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.

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Conversion Rate

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Shows percentage of visitors who buy something; calculated by dividing the number of purchases by the total number of visitors.

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Monthly Traffic Growth Rate

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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.

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Customer Satisfaction Score (CSAT)

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Measures customer satisfaction with their purchasing experience; generally gathered through surveys on a scale of 1 to 10.

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Stock to Sales Ratio

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Compares inventory on hand to the number of sales; calculated by dividing the ending inventory by the sales for that same period.

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Inventory Turnover

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Reflects how often inventory is sold and replaced over a period; measured by dividing cost of goods sold by average inventory at cost.

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Customer Lifetime Value (CLV)

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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.

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Foot Traffic

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Counts the number of customers entering a store; measured using manual counting, sensors, or tracking software.

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Shrinkage Rate

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Calculates loss of inventory due to theft, error, or damage; measured by dividing the difference between recorded and actual inventory by the recorded inventory.

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Days to Sell Inventory

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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.

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Product Category Performance

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Shows the strength of a specific category of products; measured by analyzing sales data, margin, and turnover within the category.

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Sell-through Rate

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Percentage of inventory sold in a given period; measured by dividing the number of units sold by the initial number of units available.

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Stockout Frequency

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Number of times stock is not available for sale; measured through inventory tracking systems and sales data.

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Gross Margin Return on Investment (GMROI)

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Evaluates inventory profitability; calculated by dividing gross margin by average inventory cost.

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Sell-out Percentage

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Measures the amount of inventory sold during a season; calculated as the total sold inventory divided by the sum of sold and unsold inventory.

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Sales per square foot

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Measures the efficiency of the sales space; calculated by dividing total net sales by the number of sales square footage.

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Return on Investment (ROI)

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Calculates overall profitability of merchandise; measured by dividing net profit by total investment in inventory.

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Markup Percentage

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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.

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Average Transaction Value (ATV)

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Average amount spent per transaction; measured by dividing total sales by the number of transactions.

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