by Dana Dabagova
Published
Every week a fashion store should read six numbers: sales against target, footfall, conversion rate, average transaction value, units per transaction and sales per hour worked. Together they show whether the problem is getting people in, getting them to buy, or making the team's hours pay.
The six indicators
- Sales against target and against the same period last year.
- Footfall: how many people came in.
- Conversion rate: transactions divided by footfall.
- Average transaction value: sales divided by number of transactions.
- Units per transaction (UPT): units sold divided by number of transactions.
- Sales per hour worked: sales divided by team hours.
Reading them together
One indicator alone misleads. Falling sales with stable footfall and falling conversion point to a problem inside the store. Falling sales with stable conversion and falling footfall point to a problem outside it. Rising average transaction with falling units per transaction may simply mean prices went up.
From number to action
- Low conversion at peak hours: review the rota and who is on the floor then.
- Low units per transaction: work on styling and suggesting the second piece.
- Low sales per hour on certain days: move hours to where they are needed.
- Falling footfall: windows, local events, outreach to existing clients.
The Monday meeting
Twenty minutes is enough. The store manager brings the six numbers, picks with the team one indicator to focus on that week and one action to move it. The following Monday you check whether it moved.
Related questions
What is a good conversion rate for a fashion store?
It varies widely by format and location: a store on a tourist thoroughfare converts less than a destination boutique. The useful comparison is with the same store in the previous period and with similar stores in the network, rather than with an industry average.
Do we need a footfall counter?
Yes, if you want to measure conversion. Without knowing footfall you cannot tell a traffic problem from a selling problem.
Related service: Retail performance and store turnaround