5 Retail Store Budgeting Metrics You Shouldn’t Forget
Store budgeting is one of the most important aspects of retailing. While every retailer is different, all retailers must engage in store budgeting if they want their stores to be profitable. The following five components of store budgeting are important for any type of retailer.
- Event annotation – Retailing is a dynamic environment. Things can change at the drop of a hat, and one even can change your store’s performance before you realize it. A customer slips on a wet floor, merchandise is a day late from one of your most important vendors, or half your store staff walks out on a union strike. These things can happen. Annotating events as they happen help you keep a handle on what’s going on at each store, which helps you budget better for the next month, quarter, and year.
- Store ranking – Want to see which are your best, or worst, performing stores in sales, revenues, or traffic? You can set your own target and rank your stores so that you can see which ones need your attention the most.
- Point-of-sale integration – One area where many retailers fail is in the area of integration. When you integrate your store budgeting functions with your point of sale, you incorporate a load of data into your budgeting formulas that are absolutely necessary. You can drill down to the best data and be more accurate in your budgeting.
- Add multi-level views – Store managers are not the only employees who need to see your budgeting data. You can set the views for your data to multiple levels, giving each level of management access to the data that is important for their analyses.
- Reporting variances – As we said earlier, retail is a dynamic environment. Things vary. Your sales one week could be higher than normal and lower than normal the next week. By reporting variances, you can establish time-period averages to reflect a more accurate picture of your retail environment.
Store budgeting is very important. With the right tools, it’s a cinch.