Retail industry is undergoing a transformation with the increasing demand for a personalized customer experience across all channels. This leads to an accumulation of data and metrics, making it challenging for retailers to understand which metrics to measure. Matthew Shay, President and CEO of the National Retail Federation, stated that experts are now questioning the traditional retail metrics like same-store sales and exploring new ways of gauging success. Next-gen metrics like comp sales, market share, and net promoter scores are now considered more valuable, as they take into account the holistic shopping experience across all channels and reflect the channel-agnostic consumer behavior.
Duty-free is an important aspect of the fashion and tourism industry. Obviously, the duty-free store has a large impact on how people perceive the country they are visiting. Therefore, you must have all your bases when it comes to running your duty-free business. LS Retail ERP can help you manage your store efficiently by providing tools such as LS Retail Mobile POS.
Also, stock tracking systems so that you know what inventory is available at any point in time (and where). Furthermore, you will also get data analysis reports that give insight into trends within your business based on sales performance. Moreover, there are many ways in which we can help you manage your duty-free store effectively!
In the fashion retail sector, here are five key metrics to be tracked and measured effectively:
- Stock availability and size fragmentation – Keeping track of stock availability across physical stores and online helps prevent customer disappointment and improves the customer experience. Monitoring regional disparities and fragmented sales distribution helps retailers move items to locations where they sell best.
- Sell-through rate – It is the most important KPI for fashion retailers as it tells you the amount of stock sold and the current position. This metric gives you a good indication of your selling rate and helps you determine ROI. By comparing the actual sell-through rate to the expected sell-through rate, you can determine if you are overstocking or understocking, and take corrective measures early.
- Store performance – Monitoring the store performance helps understand which stores are driving the most sales and which ones need improvement. It can be measured by calculating the sales per square foot, average transaction value, and conversion rate.
- Product lifecycle curve – Fashion industry is fast-paced, and retailers have a limited window to sell their stock. Most apparel follows a four-step lifecycle of introduction, growth, maturity, and decline. Understanding the product lifecycle and tracking the stock and sell-through rates helps retailers take appropriate action to drive sales, order more stock, and reduce the price to clear remaining stock.
- Customer engagement – Measuring the customer engagement helps understand the customer experience and their loyalty. Net promoter score, customer satisfaction survey, and repeat purchase rate are a few metrics to measure customer engagement.
In conclusion, measuring the right metrics helps fashion retailers understand the sales, inventory, and customer behavior, and take appropriate measures to improve the customer experience and drive sales. Retailers should aim to measure the metrics that matter to their business and track them effectively.
If you are looking forward to implementing LS Central, you must Contact Trident Information Systems. We are a Gold Microsoft Dynamics 365 Implementation Partner and LS Central Diamond Partner. Further, with a team of highly experienced professionals, we ensure our clients get the most out of their LS Retail ERP Software. In addition, we have also gained a massive clientage with our excellent services. Contact us for further information.