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RETAIL’S ABCD….. Cost Price (C. P.) MRP (Maximum Retail Price) Gross Sale Net Sale Gross Margin Gross Margin % Mark up Mark Down Flat Price

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COST PRICE (C.P.) Is the price at which the merchandise was bought from the vendor.

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MRP ( MAXIMUM RETAIL PRICE) Is the price at which the merchandise is sold at store OR Is the price customer pays to buy a merchandise MRP = GROSS SALE VALUE

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NET ON TAX (NOT) or NET SALE VALUE Price after deducting taxes (sale tax , VAT, service tax) and discounts (if applicable) FORMULA : - NOT = GROSS VALUE – TAX VALUE Eg. If MRP = Rs. 499 , Taxes = 10% Tax Value = (499 * 10)/100 =Rs. 49.9 NOT = 499 – 49.9 = Rs. 449

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GROSS MARGIN Overall margin or profit made on a merchandise. Formula : - Gross Margin = MRP – CP or Gross Margin = Gross Value – Cost Price Eg. : If C.P. = Rs. 240 , MRP = Rs. 400 Gross Margin = 400 – 240 = Rs. 160

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GROSS MARGIN % Overall profit% made on the merchandise Formula : - Gross Margin % = MRP - CP C. P. 100 Eg. : If C.P. = Rs. 240 , MRP = Rs. 400 400 -240 Gross Margin % = 240 100 = 66.6%

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KEY PERFORMANCE INDICATOR (KPI) Walk- ins No. of Bills (NOB) Conversion % Average Cash Memo (ACM) Average Basket Size (ABS) Per Piece Value (PPV) Sales Per Square Foot (SPF)

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WALK – INS Total number of customers walking inside the store.

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NUMBER OF BILLS (NOB) Total cash memos / bills / invoices made in a day.

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CONVERSION % % of customers who purchased from the store . Formula : - Conversion % = NOB Walk - ins 100 Eg. : If NOB = 200 , Walkins = 500 200 Conversion % = 500 100 = 40 %

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AVERAGE CASH MEMO (ACM) Average bill value per customer Formula : - ACM = Sale Value NOB Eg. : If sale value = Rs. 42000 , Walkins = 70 42000 ACM % = 70 = Rs. 600

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AVERAGE BASKET SIZE (ABS) Average quantity sold per customer Formula : - ACM = Sale Value NOB Eg. : If sale value = Rs. 48000 , Walkins = 60 48000 Avg Basket Size % = 60 = Rs. 800

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PER PIECE VALUE (PPV) Average price of each merchandise Formula : - PPV= Sale Value Qty Sold Eg. : If sale value = Rs. 48000 , Qty Sold = 160 48000 Conversion % = 160 = Rs. 300

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SALES PER SQUARE FOOT (SPF) Formula : - SPF= Sale Value Area Eg. : If sale value = Rs. 7200 , Qty Sold = 360 7200 Conversion % = 360 = Rs. 20 Sale value generated on per square foot

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TARGET SETTING Contribution% ROS/Day Trading Days

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WTD (Week Till Date) MTD (Month Till Date) YTD (Year Till Date) STD (Season Till Date)

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CONTRIBUTION % % Contribution of each department Formula : - Contribution % = Department Sale Value Store Sale Value 100 Eg. : If Dept Sale Value = Rs. 51000 , Store sale value = Rs. 170000 51000 Contribution % = 170000 100 = 30 %

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RATE OF SALE (ROS) Average qty sold on each day Formula : - ROS = Total Sold Qty Days Eg. : If Sold Qty = Rs. 156 , Days = 12 156 Conversion % = 12 = 13

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HOW STOCK REACHES TO THE STORE VENDOR Inspection Process MRDC Mumbai Regional Distribution Center MGRN Manual Goods Receipt Note GRN Goods Receipt Note STN Stock Transfer Note LR Lorry Receipt Inwarded at Store

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Stock n Sale Performance Indicators Closing Qty Sold Qty MRDC Qty STN Date Trading Days Sell Through Cover Days Effective Options Effective Qty Effective Cover Days FMS SMS

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Sold Qty = Total qty sold in a month/ season Closing Qty = Remaining Qty available in the store MRDC Closing = Qty available in warehouse

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STN DATE Is the date on which merchandise arrived in store

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Trading Days Refers to number of days the merchandise is on floor Or. Number of days since 1 St STN Date Formula : - Trading Days = Current Date – STN Date Eg. : If STN Date = 20 th July 09 , Current Date = 28 th July 09 28 th July 09 - 20th July 09 Trading Days % = = 8 days

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Sell Through% % of qty sold of the qty received Formula : - Sell Thru% = Sold qty Sold qty + Cls Qty 100 Eg. : If sold qty = 200 , closing = 300 200 Conversion % = (200 + 300 ) 100 = 40 %

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Cover Days Formula : - Cover Days = Closing Qty ROS Eg. : If Closing Qty = 258 , ROS = 6 258 Cover Days = 6 = 43 Number of days in which the stock quantity on floor will get finished .

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Effective Option If no. of pcs available in an option is 50% of prepack qty or more. For Eg. option A Prepack qty = 12 Cls qty = 8 option B Prepack qty = 12 Cls qty = 4 Effective option Effective qty

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Effective Closing Qty Closing Qty of all effective options For Eg. option A Prepack qty = 12 Cls qty = 8

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Effective Cover Days Formula : - Cover Days = Effective Closing Qty ROS Eg. : If Eff Closing Qty = 258 , ROS = 6 258 Cover Days = 6 = 43 Number of days in which the effective cls quantity on floor will get finished .

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Count how many apples are there in the basket You eat 5 apples a day, in how many days you will empty the entire basket = 40 = 8