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Retail Measures and InventoryMeasures
By,Siddartha Rayapudi
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Measures in Retail Retail sales
Unit sales
Square feet returns
Gross Margin Gross Profit
Store Unit Capacity
Average Transaction value
Return on investment
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Measures in Inventory Bill of materials
Average stock
Sales Turnover
Sell Through Stock to sales ratio
Weeks of supply
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Retail in detail Retail sales consists of the sale of physical
goods or merchandise from a fixed location
Unit sales In retail, sales per unit area is astandard and usually the primary measurement ofstore success
Square feet returns is something earned persquare feet of investment made by any retailoutlet
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Gross margin, gross profit margin or gross profit
rate is the difference between the production costsexcluding overhead, payroll, taxation, and interest
payments and sales revenue.
gross profit or sales profit is the differencebetween revenue and the cost of making a productor providing a service, before deducting overhead,payroll, taxation, and interest payments.
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The average transaction Value is calculated bydividing the Value of all transactions by thenumber of transactions on a daily, weekly,monthly, or annual basis.
Return on investment (ROI), rate of profit orsometimes just return, is the ratio of moneygained or lost (whether realized or unrealized) on
an investment relative to the amount of moneyinvested.
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Inventory In Detail A bill of materials (sometimes bill of material or
BOM) is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, components, parts and the
quantities of each needed to manufacture an endproduct.
The average value of stock during a financial
year, calculated by adding together the values ofthe stock at the beginning and end of the yearand dividing by two
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Sales turnover is purely the revenue from sellinga good or service. It excludes things like return oninvestment, interest earned and assetappreciation which are also included in the
annual turnover.
In publishing, sell-through refers to a percentageof units shipped which are actually sold. In the
case of books, the rest is returned to thepublisher. Other items, such as software, areusually discounted.
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The stock to sales ratio is a way to determine therelationship between how much stock is presenthave and how much is being sold.
Weeks of supply tells the inventory manager howlong the current on hand will last based oncurrent sales demand.
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Thank You