KPIs in Retail: the 7 most important Key Performance Indicators


Analysing the most important KPI's in Retail is essential to optimally manage your brick-and-mortar store. Even though measuring your income is fundamental to have a clear vision of how your business is going, it is only a financial indicator. The number of receipts done in a day, or the total sales, only tells you one part of the story: the one linked with the revenue.

TCG - CTA text - EBook KPI EN

These metrics do not say anything about the customer experience, how the clients behave, or if the Christmas campaign has helped to increase sales. For instance, imagine one day you notice a sudden revenue growth: What could be the cause? Was it the staff? The store windows? Or may it be the product that you put on sale?

Answering all these questions is possible if you analyse the correct KPI’s and have a global idea of your store’s results.

KPIs in Retail

Which are the most important KPIs in Retail?

Pedestrian traffic

The external pedestrian traffic is the number of pedestrians who pass by your store every day that we can classify as potential clients. When talking about a brick-and-mortar store, the more people that pass by it throughout the day, the more people can enter the shop and make a purchase. Thus, the volume of pedestrian traffic plays a pivotal role when it is time to look for the right spot to open a store.


Among the most important KPIs in Retail is the number of clients that enter the store. This specific data allows you to identify how many people have set foot in the store and at which hours there was more affluence.

Average attendance

The average attendance, or turnover, refers to the average number of people inside the shop during a fixed time. It is the difference between the number of entries and the number of exits, thus allowing retailers to discover the day or hour of the week with most clients. This KPI is vital to manage the staff's rosters.

Average time spent

The average time spent inside the shop permits you to discover how much time the clients spend in the shop. Thanks to this indicator, retailers can detect problems with the customer’s experience inside the shop and solve them.

Attraction rate

The attraction rate is calculated by dividing the number of pedestrian traffic and the number of entries inside the store. This is one of the crucial KPIs in Retail, as it gives an idea of how much a store can attract clients. Thanks to this indicator, you will discover if your store windows or campaigns are working effectively.

Conversion rate

The conversion rate represents the number of receipts as a function of the number of customers that have entered. This KPI is pivotal, as it gives you an idea of ​​your sales efficiency and represents a suitable indicator to compare the different points of sale and their evolution.

Cost for Potential Client (CPC)

The position of a store is an essential factor for its growth, as it measures the potential clients that pass by it daily. The Cost per Potential Customer represents the marginal cost we pay for each potential customer who walks by the shop windows. This value allows us to compare the rental price per m2 of different establishments according to pedestrian traffic.

TC Analytics, TC Group Solutions' Retail Intelligence tool, allows retailers to gather clear and reliable data in order to increase the business' revenue and manage the KPIs in Retail. Contact us today to discover more about how our solutions can help you boost your business or follow us on LinkedIn to stay updated on the Retail sector.

TCG - CTA post - Ebook KPI- EN