Benchmarking

Men's Women's Household

Apparel Apparel Shoes Furniture Electronics appliance Grocery Average D-Mart
Pretax Profit % 1.6 4.1 1.9 4.5 4.1 2.9 2.3 3.1 5.23
Gross Margin % 48.9 46 41.1 44.3 37 34.5 27.3 39.9 29.3
Inventory
Turnover 2.6 5.4 2.8 3.5 9.5 4.6 15.1 6.2 15.41
Debt-to-Worth
Ratio 1.5 1.3 1.8 1.6 2.6 1.8 1.8 1.8 0.76
Current Ratio 2.3 2.2 1.5 1.6 1.6 1.7 1.6 1.8 1.34

Best Practice Processes

 Limited sales mix model – limited to Food, Grocery, shoes etc. small scale product mix.
 Staying far away from Categories like high-end electronics, jewelry and watches.
 Keeping limited variety of brands in product mix to avoid larger inventory turnover. Instead of having
stocked multiple brand of similar product, focus is on storing multiple type of product from limited
number of specialized and consumer brand.
 Isolated store policy to reduce infrastructure investment cost.
 Follow store-ownership model to reduce renal cost and Makes deep investments to acquire land and
equipment.
 Direct customer interaction model through multiple sources such as observation, research, feedback,
sales organization

KPI for supermarket

Customer Analytics

 Average order size per transaction

 Average sales per transaction
 Average number of items per transaction
 Average profit per transaction
 Number of trips per month
 Average shopping time
 Visit to buy ratio


Financial Analytics

 Total Sales
 Gross Profit Margin
 Price premium
  Actual expenses

 Total payable
 Total receivable
 Return on capital invested
 Margin %
 Markup %
 % of revenue generated from non-house brands
 % of profit generated from non-house brands
 % of revenue generated from house brands
 % of profit generated from house brands

Store Analytics
 Sales per hour
 Sales per labor hour
 # of transactions per hour
 Sales per m2
 # of products per m2
 Revenue/Profit per m2
 Store conversion rate
 % of returning customer
 Fixed cost of opening per month
 Variable cost of opening per hour
 KWH per square foot
 % of not displayed inventory
 Average time on shelf
 % of expired products
 % of damaged products
 % of returned products
 Average # of employees
 Wage to sales ratio
 Average Inventory value
 Inventory Turnover

Marketing

 Response rate
 Lead to pipeline ratio
 Lead to closed sales ratio
 Inquiry growth following campaign
 Lead to pipeline conversion
 Marketing cost per lead per segment
 % of leads generated
 Marketing budget ratio
 Return on Marketing Investment (ROMI)
 Contact rate
 Effective reach (% of targeted-audience)