KPI of the Day – Sales: % Sales growth in stores open at least 12 months
Measures the percentage of the sales growth variance in stores open for at least 12 months, compared with the previous sales value performance.
To reflect the sales performance in already established outlets, eliminating other variables.
Closely related to % Sales Growth, this KPI is considerably different from the latter and should be regarded as a valuable metric by itself. Both are vital in determining whether the currently employed sales methods are obtaining the anticipated results, or for assessing and predicting sales development trends and patterns.
However, stores that have been operating for more than 12 months might experience a different % Sales growth than newly opened ones, since they lack the novelty factor. For this reason, it is essential for established stores to renew and constantly innovate their sales methods and strategies in order to keep up a positive sales trend.
Besides considering the Marketing Mix and thus adjusting the classical P’s of Marketing (Product, Price, Promotion, Place, Package, Positioning and People), stores should adopt supplementary measures in order to increase sales).
In this regard, some best practices include:
- Expanding online: the transfer of business from store sales to online sales is rapidly increasing, thus, if the nature of the sold products allows it, opening an online store is a cost-efficient method for boosting sales;
- Marketing to millennials: millennials represent a considerable portion of the current global population and their buying power is reaching its prime. Retailers should place their focus on researching this generation’s purchasing habits and adapting to them;
- Target innovation: newest technologies are a priority for the majority of customers which are drawn to this area and likely to invest in it. Retailers should develop innovative products and distribution channels, as well as, employ innovative equipment within their premises.
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