40 grocery store KPIs to track in 2024

A man in a red apron standing in a grocery store aisle.

Table of Contents

Table of Contents

Welcome to our guide on grocery store KPIs. In this article, we explore 40 essential key performance indicators that are crucial for the success and efficiency of grocery stores. Whether you’re managing day-to-day operations, strategizing for growth, or enhancing customer experience, these KPIs offer invaluable insights for your business.

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A man in a red apron standing in a grocery store aisle.

40 grocery store KPIs deserving your attention

Understanding and monitoring key performance indicators (KPIs) is essential for success in the grocery business. This comprehensive guide delves into critical KPIs that every grocery store manager and owner should be aware of. Spanning across various aspects of the business, from financial health and sales performance to customer engagement, operational efficiency, and loss prevention, these KPIs provide valuable insights for informed decision-making and strategic planning. 

Whether you’re looking to enhance customer satisfaction, optimize operations, or boost profitability, these KPIs are integral tools that deserve your attention. They not only help in identifying strengths and areas for improvement but also play a crucial role in shaping the future of your grocery store in a competitive market.

  1. Cash flow (CF)
  2. Debt-to-equity ratio (DER)
  3. Gross margin (GM)
  4. Operating margin (OM)
  5. Return on assets (ROA)
  6. Average transaction value (ATV)
  7. Basket size (BS)
  8. Sales growth rate (SGR)
  9. Same-store sales growth (SSSG)
  10. Total sales revenue (TSR)
  11. Conversion rate (CR)
  12. Customer retention rate (CRR)
  13. Customer satisfaction score (CSS)
  14. Foot traffic (FT)
  15. Net promoter score (NPS)
  16. Average transaction time (ATT)
  17. Energy usage (EU)
  18. Labor cost percentage (LCP)
  19. Store cleanliness and maintenance (SCM)
  20. Waste reduction rate (WRR)
  21. Days of supply (DOS)
  22. Order accuracy rate (OAR)
  23. Out-of-stock rate (OOSR)
  24. Shrinkage rate (SR)
  25. Stock turnover rate (STR)
  26. Email campaign effectiveness (ECE)
  27. Mobile app usage (MAU)
  28. Online sales growth (OSG)
  29. Social media engagement (SME)
  30. Website traffic (WT)
  31. Cancellation rate (CanR)
  32. Complaint resolution time (CRT)
  33. Incorrect pricing adjustments (IPA)
  34. Number of returns (NoR)
  35. Number of voids (NoV)
  36. Damaged goods sold (DGS)
  37. Discounted transactions (DT)
  38. Fraudulent transactions (FTx)
  39. Sales reducing activities (SRA)
  40. Sales reducing transactions (SRT)

Financial health KPIs for grocery stores

Understanding the financial health of a grocery store is crucial for sustainable growth and efficient management. Key performance indicators (KPIs) in this area provide a snapshot of the store’s financial stability and profitability. These metrics are vital for store owners and managers to make informed decisions and strategize for future success. Financial health KPIs offer insights into various aspects such as cash flow, debt management, and overall profitability. They help in identifying areas that need improvement and in recognizing successful strategies.

Tracking these KPIs regularly can alert management to potential issues before they become critical. For instance, a declining gross margin might indicate rising costs or pricing issues, while a low return on assets could suggest inefficient use of resources. These indicators are derived from financial statements and operational data, making them reliable tools for assessment. Understanding what each KPI represents and how it impacts the overall financial health of the business is essential. Managers should aim for optimal values in these KPIs to ensure the store remains competitive and profitable.

1. Cash flow (CF)

Cash flow formula: Net income + non-cash expenses + changes in working capital

Cash flow measures the net amount of cash and cash-equivalents being transferred into and out of a business. It is found in the company’s cash flow statement. A positive cash flow indicates that a company’s liquid assets are increasing, enabling it to settle debts, reinvest in its business, pay expenses, and provide a buffer against future financial challenges. Conversely, a negative cash flow can indicate problems in liquidity, potentially leading to difficulties in maintaining or growing operations.

How to improve cash flow:

  • Optimize inventory levels to reduce holding costs.
  • Negotiate better payment terms with suppliers.
  • Implement efficient billing and collection processes.
  • Reduce operational expenses without impacting customer experience.
  • Explore opportunities for sales promotions to increase revenue.
  • Regularly review and adjust product pricing strategies.
  • Implement cost-effective marketing strategies to boost sales.

2. Debt-to-equity ratio (DER)

Debt-to-equity ratio formula: Total liabilities/total shareholders’ equity

The debt-to-equity ratio (DER) compares a company’s total liabilities to its shareholder equity. It’s a measure of the degree to which a company is financing its operations through debt versus wholly owned funds. Found on the balance sheet, a lower DER is generally preferred as it signifies a more financially stable business. A high DER might indicate that a company is at risk of being over-leveraged.

How to improve debt-to-equity ratio:

  • Pay down existing debt.
  • Increase equity through retained earnings or by issuing new shares.
  • Avoid taking on unnecessary new debt.
  • Improve operational efficiency to increase profits.
  • Reinvest profits back into the business.
  • Regularly review and manage expenditures.
  • Optimize asset utilization to boost returns.

3. Gross margin (GM)

Gross margin formula: (Sales revenue – cost of goods sold)/sales revenue

Gross margin represents the proportion of each dollar of revenue that the company retains as gross profit. It is a key indicator of a company’s financial health and its efficiency in managing labor and supplies in production. A higher gross margin implies better efficiency and profitability. Found on the income statement, a lower gross margin can suggest high production costs or poor sales pricing strategies.

How to improve gross margin:

  • Increase prices where possible without affecting customer demand.
  • Reduce costs of goods sold by negotiating better supplier contracts.
  • Improve inventory management to reduce waste.
  • Enhance operational efficiencies in production.
  • Focus on selling higher-margin products.
  • Regularly analyze product line profitability.
  • Implement cost-control measures.

4. Operating margin (OM)

Operating margin formula: Operating income/sales revenue

Operating margin measures the proportion of a company’s revenue that is left over after paying for variable costs of production like wages and raw materials. It helps in assessing the efficiency of a company’s core business without considering the impact of financing and tax expenses. A higher operating margin indicates a more profitable and well-managed company. It’s found on the income statement.

How to improve operating margin:

  • Control operating costs and overheads.
  • Increase revenue through marketing and sales strategies.
  • Streamline operations for greater efficiency.
  • Focus on high-margin products or services.
  • Improve pricing strategies.
  • Optimize supply chain and inventory management.
  • Leverage technology to reduce costs.

5. Return on assets (ROA)

Return on assets formula: Net income/total assets

Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. It shows how efficient management is at using its assets to generate earnings. Found on the balance sheet and income statement, a higher ROA means that the company is more effective in utilizing its assets. A low ROA could indicate inefficient management and poor use of assets.

How to improve return on assets:

  • Enhance asset utilization to generate more revenue.
  • Dispose of or repurpose underperforming assets.
  • Improve operational efficiency and reduce waste.
  • Increase sales and revenue without a proportional increase in assets.
  • Control expenses to maximize net income.
  • Regularly review and optimize inventory levels.
  • Invest in technology that improves productivity.

Sales performance KPIs for grocery stores

Sales performance KPIs are crucial for grocery stores to measure and understand their success in generating revenue. These indicators help store managers and owners gauge the effectiveness of their sales strategies, customer appeal, and overall market performance. By closely monitoring sales KPIs, grocery stores can make data-driven decisions to enhance their sales processes, adjust pricing strategies, and improve customer service. These metrics not only reflect the current sales status but also provide insights into trends and potential areas for growth.

In a highly competitive retail environment, keeping a close eye on sales performance is key to staying ahead. Whether it’s understanding the average transaction value or tracking the growth rate, these KPIs offer a detailed view of the store’s sales dynamics. Effective management of these metrics leads to better inventory planning, targeted marketing efforts, and improved customer satisfaction. Each KPI in this category holds significant value in painting a comprehensive picture of the store’s sales health.

6. Average transaction value (ATV)

Average transaction value formula: Total sales revenue/number of transactions

Average transaction value (ATV) is a measure of the average amount spent per customer transaction. It’s a critical metric for understanding customer buying behavior and the effectiveness of sales strategies. A higher ATV indicates that customers are spending more in each transaction, which can be a sign of effective upselling or a successful product mix. ATV can be found in sales data and POS systems.

How to improve average transaction value:

  • Implement strategic upselling and cross-selling techniques and audit adherence using cloud-based video surveillance.
  • Offer bundled products or services at a discounted rate.
  • Train staff on effective sales techniques.
  • Enhance the in-store shopping experience.
  • Introduce loyalty programs that encourage higher spending.
  • Regularly update and diversify the product range.
  • Use targeted marketing to attract higher spending customers.

7. Basket size (BS)

Basket size formula: Total number of items sold/number of transactions

Basket size refers to the average number of items purchased per transaction. It’s an important KPI for grocery stores as it reflects the customers’ purchasing habits and the store’s ability to encourage more purchases per visit. A larger basket size usually indicates effective merchandising and store layout, as well as successful promotional strategies.

How to improve basket size:

  • Optimize store layout to encourage more purchases.
  • Implement effective in-store promotions and discounts.
  • Enhance product variety and availability.
  • Utilize point-of-sale displays to encourage impulse buys.
  • Offer bundled deals and discounts on multiple purchases.
  • Train staff in suggestive selling techniques.
  • Use data analytics to understand and cater to customer preferences.

8. Sales growth rate (SGR)

Sales growth rate formula: (Current period sales – Previous period sales)/Previous period sales

Sales growth rate measures the percentage increase or decrease in a store’s sales over a given period. It’s a vital indicator of a store’s overall health and its ability to attract and retain customers. Positive growth suggests successful marketing, appealing product offerings, and effective customer service, while negative growth can signal issues that need addressing.

How to improve sales growth rate:

  • Implement targeted marketing campaigns.
  • Regularly review and adjust pricing strategies.
  • Expand product offerings to meet customer demand.
  • Enhance customer service and shopping experience.
  • Explore new sales channels, such as online platforms.
  • Engage in community events and local advertising.
  • Analyze market trends and adjust strategies accordingly.

9. Same-store sales growth (SSSG)

Same-store sales growth formula: (Current period sales – Same period last year sales)/Same period last year sales

Same-store sales growth compares the sales performance of a store over the same period in different years, accounting only for stores that have been open for a certain period. This KPI helps in understanding the growth or decline in sales, excluding the impact of newly opened or closed stores. A positive SSSG indicates increased customer loyalty and effective sales strategies.

How to improve same-store sales growth:

  • Enhance in-store customer experience.
  • Introduce new and seasonal product lines.
  • Implement effective loyalty programs.
  • Conduct regular market research to understand customer needs.
  • Utilize local marketing and community engagement.
  • Optimize inventory management to ensure product availability.
  • Focus on staff training for improved customer interactions.

10. Total sales revenue (TSR)

Total sales revenue formula: Sum of all sales transactions

Total sales revenue is the total income generated from goods sold or services provided. It’s a direct indicator of a store’s market presence and its ability to attract and retain customers. High total sales revenue points to a strong customer base and effective sales and marketing strategies.

How to improve total sales revenue:

  • Expand the customer base through marketing and outreach.
  • Diversify product offerings to cater to a wider audience.
  • Enhance customer service to improve retention and loyalty.
  • Optimize pricing strategies for competitiveness and profitability.
  • Utilize sales promotions and discounts strategically.
  • Expand sales channels, including online and mobile platforms.
  • Conduct regular market analysis to identify new opportunities.

Customer engagement KPIs for grocery stores

Customer engagement KPIs are essential for grocery stores to understand their relationship with customers and the effectiveness of their customer service strategies. These metrics offer insights into how customers interact with the store, their level of satisfaction, and their loyalty. By closely monitoring these KPIs, grocery stores can tailor their offerings and services to better meet customer needs and preferences. This focus on customer engagement is crucial for building a loyal customer base, enhancing the overall shopping experience, and driving repeat business.

In today’s competitive retail environment, where customers have numerous choices, maintaining high levels of customer engagement can significantly impact a store’s success. These KPIs help identify areas that are performing well and those that need improvement, enabling grocery stores to make strategic decisions that enhance customer satisfaction and retention.

11. Conversion rate (CR)

Conversion rate formula: Number of sales/number of visitors

Conversion rate measures the percentage of visitors to a grocery store who make a purchase. It’s an important indicator of how well the store converts potential customers into actual customers. A higher conversion rate suggests effective merchandising, marketing, and sales tactics. It can be improved by enhancing the store environment and customer service.

How to improve conversion rate:

  • Enhance store layout and product placement for easier shopping with Solink Heatmaps.
  • Train staff in customer service and sales techniques.
  • Implement targeted marketing to attract potential buyers.
  • Offer promotions and discounts to incentivize purchases.
  • Improve signage and in-store navigation.
  • Conduct customer feedback surveys to understand barriers to purchase.
  • Utilize technology like mobile apps or loyalty programs to boost engagement.

12. Customer retention rate (CRR)

Customer retention rate formula: (Number of customers at end of period – Number of new customers during the period)/Number of customers at start of period

Customer retention rate is a measure of how many customers continue to shop at a grocery store over a specific period. A high CRR indicates strong customer loyalty and satisfaction. It’s essential for stores to focus on retaining customers, as it is generally more cost-effective than acquiring new ones.

How to improve customer retention rate:

  • Implement a robust customer loyalty program.
  • Provide exceptional customer service consistently.
  • Engage with customers through social media and email newsletters.
  • Offer personalized shopping experiences.
  • Gather and act on customer feedback.
  • Create a community around the store through events and local involvement.
  • Regularly update product offerings based on customer preferences.

13. Customer satisfaction score (CSS)

Customer satisfaction score formula: Total satisfaction score/number of respondents

Customer satisfaction score reflects how satisfied customers are with their shopping experience. This metric is usually gathered through surveys and feedback forms. A high CSS indicates that customers are happy with the store’s products and services, which can lead to increased loyalty and word-of-mouth referrals.

How to improve customer satisfaction score:

  • Regularly gather and analyze customer feedback.
  • Address customer complaints and issues promptly.
  • Train staff in customer service excellence.
  • Ensure product quality and availability.
  • Streamline the checkout process for convenience.
  • Maintain a clean and welcoming store environment.
  • Offer a variety of products that cater to customer needs.

14. Foot traffic (FT)

Foot traffic formula: Count of individual visits to the store

Foot traffic measures the number of people who visit a grocery store. It’s an important indicator of the store’s appeal and its ability to attract customers. High foot traffic can lead to increased sales opportunities and is influenced by location, store layout, and marketing efforts.

How to improve foot traffic:

  • Engage in local advertising and community events.
  • Optimize store visibility and signage.
  • Use existing security cameras to measure footfalls.
  • Offer in-store events or promotions to attract visitors.
  • Maintain an attractive and clean store exterior.
  • Partner with local businesses for cross-promotion.
  • Utilize social media to create buzz about the store.
  • Offer unique products or services that draw customers.

15. Net promoter score (NPS)

Net promoter score formula: (% of Promoters – % of Detractors) x 100

Net promoter score is a measure of customer loyalty and the likelihood of customers recommending the store to others. It’s calculated based on customer responses to the question, “How likely are you to recommend our store to a friend or colleague?” A high NPS is a strong indicator of customer satisfaction and loyalty.

How to improve net promoter score:

  • Consistently deliver high-quality products and services.
  • Foster a strong customer-centric culture among staff.
  • Address customer feedback and concerns quickly.
  • Create a unique and enjoyable shopping experience.
  • Implement customer loyalty programs.
  • Maintain high standards of store cleanliness and organization.
  • Engage with customers through various communication channels.

Operational efficiency KPIs for grocery stores

Operational efficiency KPIs are key in managing and optimizing the day-to-day operations of a grocery store. These metrics help in evaluating how effectively and efficiently the store is being run, from managing labor costs to ensuring smooth transactions. By tracking these KPIs, grocery store managers can identify areas for improvement in their operational processes, leading to cost savings and enhanced customer service. Efficient operations not only reduce overheads but also contribute to a better shopping experience for customers, which in turn can drive sales and profitability.

In the fast-paced retail environment, operational efficiency is crucial for staying competitive. Whether it’s through streamlining transaction times or improving store maintenance, these KPIs provide actionable insights that can significantly impact the store’s overall performance.

16. Average transaction time (ATT)

Average transaction time formula: Total time for all transactions/number of transactions

Average transaction time measures the duration of each customer transaction at the store. A lower ATT indicates a more efficient checkout process, leading to a better customer experience and potentially higher sales. It’s crucial for managing customer wait times and overall satisfaction.

How to improve average transaction time:

  • Implement more efficient POS systems
  • Train staff in quick and effective transaction handling.
  • Simplify the checkout process.
  • Use technology to streamline transactions, such as contactless payments.
  • Optimize staffing during peak hours.
  • Regularly review and update checkout procedures.
  • Encourage self-checkout options for faster service.

17. Energy usage (EU)

Energy usage formula: Total energy consumed in a given period

Energy usage is a measure of the total amount of energy consumed by a grocery store. Efficient energy usage helps in reducing operational costs and promotes sustainability. Managing this KPI effectively can lead to significant savings and a reduced environmental footprint.

How to improve energy usage:

  • Invest in energy-efficient lighting and equipment.
  • Implement automatic lighting controls.
  • Conduct regular maintenance of HVAC systems.
  • Educate staff on energy-saving practices.
  • Optimize refrigerator and freezer efficiency.
  • Audit whether lights are turned off at night with your cloud-based security camera system.
  • Use energy management systems for monitoring and control.
  • Encourage sustainable practices within the store.

18. Labor cost percentage (LCP)

Labor cost percentage formula: Total labor costs/sales revenue

Labor cost percentage is the proportion of sales revenue that goes towards paying employee wages and benefits. It’s an important measure of how efficiently a store is using its workforce. A lower LCP indicates better labor management, contributing to profitability.

How to improve labor cost percentage:

  • Optimize staff scheduling to match customer traffic.
  • Train employees to enhance productivity.
  • Implement labor-saving technologies.
  • Monitor and manage overtime costs.
  • Cross-train employees for multiple roles.
  • Regularly review workforce efficiency and potential time theft.
  • Use performance incentives to boost productivity.

19. Store cleanliness and maintenance (SCM)

Store cleanliness and maintenance formula: Not applicable as it’s a qualitative measure

Store cleanliness and maintenance involve keeping the store environment clean, safe, and well-maintained. This KPI impacts customer perception and satisfaction. A well-kept store not only attracts more customers but also ensures a safe shopping experience.

How to improve store cleanliness and maintenance:

  • Implement a regular cleaning schedule.
  • Conduct routine maintenance checks.
  • Train staff on cleanliness and maintenance standards.
  • Use quality cleaning materials and equipment.
  • Regularly inspect and update store fixtures.
  • Ensure compliance with health and safety regulations.
  • Encourage staff and customer feedback on store conditions.

20. Waste reduction rate (WRR)

Waste reduction rate formula: (Previous period waste – Current period waste)/Previous period waste

Waste reduction rate measures the effectiveness of a store in reducing waste output. This KPI is important for cost savings and environmental sustainability. Efficient waste management can also improve the store’s public image.

How to improve waste reduction rate:

  • Implement recycling programs.
  • Reduce packaging materials.
  • Optimize inventory to prevent spoilage.
  • Donate unsold but usable items.
  • Train staff on waste reduction practices.
  • Collaborate with suppliers for sustainable practices.
  • Use technology to monitor and manage waste effectively.

Inventory management KPIs for grocery stores

Inventory management KPIs are crucial for grocery stores to effectively monitor and control their stock levels. These metrics help in ensuring that the right amount of products is available to meet customer demand without leading to overstock or stockouts. Effective inventory management is key to reducing costs associated with excess inventory and lost sales due to out-of-stock situations. By keeping a close eye on these KPIs, grocery stores can optimize their inventory turnover, maintain product freshness, and enhance customer satisfaction.

In the dynamic environment of a grocery store, where product shelf life and consumer preferences constantly change, mastering inventory management can significantly contribute to operational efficiency and profitability.

21. Days of supply (DOS)

Days of supply formula: Current inventory level/daily average usage

Days of supply measures the average number of days that the current inventory will last. It’s an important indicator for ensuring product availability and managing stock levels efficiently. An optimal DOS helps in maintaining fresh stock and reducing waste due to spoilage.

How to improve days of supply:

  • Regularly review and adjust inventory levels based on demand.
  • Implement just-in-time inventory practices.
  • Use inventory management software for accurate forecasting.
  • Monitor sales trends and seasonal variations.
  • Maintain good relationships with suppliers for timely restocking.
  • Train staff in efficient inventory handling.
  • Review and optimize the supply chain process.

22. Order accuracy rate (OAR)

Order accuracy rate formula: (Number of accurate orders/Total number of orders) x 100

Order accuracy rate measures the percentage of orders that are correctly fulfilled without errors. High accuracy is crucial for customer satisfaction and efficient inventory management. It helps in reducing returns and exchanges, saving costs, and maintaining customer trust.

How to improve order accuracy rate:

  • Use technology for order tracking and management.
  • Train staff in accurate order processing.
  • Implement quality control checks.
  • Review and streamline the order fulfillment process.
  • Encourage communication and feedback within the team.
  • Regularly audit and assess order accuracy.
  • Address and analyze the root causes of inaccuracies.

23. Out-of-stock rate (OOSR)

Out-of-stock rate formula: (Number of out-of-stock incidents/Total number of product requests) x 100

Out-of-stock rate indicates how often items are unavailable when customers seek to purchase them. A lower rate is desirable as frequent stockouts can lead to lost sales, customer dissatisfaction, and operational shrink. Managing OOSR effectively is key to maintaining consistent availability of products.

How to improve out-of-stock rate:

  • Implement effective inventory monitoring systems.
  • Regularly review and adjust stock levels.
  • Coordinate closely with suppliers for restocking.
  • Analyze sales data to predict demand patterns.
  • Train staff in inventory management best practices.
  • Utilize automated ordering systems for replenishment.
  • Develop contingency plans for unexpected demand surges.

24. Shrinkage rate (SR)

Shrinkage rate formula: (Value of lost inventory/Total sales value) x 100

Shrinkage rate measures the loss of inventory due to factors like theft, damage, or administrative errors. Minimizing shrinkage is important for profitability and accurate inventory tracking. It involves both loss prevention strategies and effective inventory management.

How to improve shrinkage rate:

  • Implement security measures to prevent theft.
  • Conduct regular inventory audits.
  • Train staff in loss prevention techniques.
  • Improve inventory tracking and management systems.
  • Address and rectify administrative errors.
  • Maintain proper storage conditions to prevent damage.
  • Foster a culture of accountability among employees.

25. Stock turnover rate (STR)

Stock turnover rate formula: Cost of goods sold/Average inventory value

Stock turnover rate is a measure of how frequently inventory is sold and replaced over a period. A higher turnover rate indicates efficient inventory management and product popularity. It’s crucial for maintaining fresh stock and optimizing inventory investment.

How to improve stock turnover rate:

  • Optimize product range to match customer demand.
  • Implement promotional strategies to boost sales.
  • Review and adjust pricing strategies.
  • Analyze sales data to identify slow-moving items.
  • Maintain optimal stock levels based on demand forecasting.
  • Enhance product visibility and accessibility in-store.
  • Collaborate with suppliers for efficient inventory replenishment.

Online and digital metrics KPIs for grocery stores

In the digital age, online and digital metrics have become increasingly important for grocery stores. These KPIs provide insights into the store’s digital presence and effectiveness in engaging customers through online channels. As more consumers turn to online shopping and digital interactions, these metrics help grocery stores to optimize their online strategies, enhance their e-commerce platforms, and engage with customers through social media and other digital means. Effective management of these KPIs can lead to increased online sales, better customer engagement, and a stronger online brand presence.

For grocery stores, adapting to and excelling in the digital realm is not just about staying relevant; it’s a strategic move to tap into a broader customer base and open up new revenue streams.

26. Email campaign effectiveness (ECE)

Email campaign effectiveness formula: (Number of desired actions/Number of emails delivered) x 100

Email campaign effectiveness measures the success of email marketing efforts in terms of customer engagement and desired actions taken (like clicks or purchases). This KPI is vital for understanding the impact of email communications on sales and customer engagement. A high ECE indicates successful email content and targeting.

How to improve email campaign effectiveness:

  • Segment email lists for targeted communication.
  • Personalize email content based on customer preferences.
  • Test and optimize email subject lines and content.
  • Use clear and compelling calls to action.
  • Regularly review and analyze email campaign metrics.
  • Ensure emails are mobile-friendly.
  • Experiment with different sending times and frequencies.

27. Mobile app usage (MAU)

Mobile app usage formula: Number of active users within a specific time frame

Mobile app usage tracks the engagement and activity of users on a grocery store’s mobile app. This metric is essential for understanding how customers interact with the app and the effectiveness of the app in driving sales and engagement. High MAU suggests a successful and user-friendly app.

How to improve mobile app usage:

  • Enhance app functionality and user experience.
  • Offer app-exclusive promotions or features.
  • Regularly update the app with new content and features.
  • Encourage app downloads through in-store promotions and online channels.
  • Collect and act on user feedback for improvements.
  • Implement push notifications for updates and offers.
  • Integrate loyalty programs and personalized experiences.

28. Online sales growth (OSG)

Online sales growth formula: (Current period online sales – Previous period online sales)/Previous period online sales

Online sales growth measures the increase in sales generated through the grocery store’s online platforms. This KPI is crucial for understanding the effectiveness of online marketing strategies and the growing preference for online shopping. A positive OSG indicates a successful online presence and customer reach.

How to improve online sales growth:

  • Optimize the online shopping experience for ease of use.
  • Implement effective digital marketing strategies.
  • Offer competitive pricing and online-exclusive deals.
  • Enhance website and app performance for reliability.
  • Provide a wide range of products online.
  • Focus on SEO to improve online visibility.
  • Engage customers through social media and email marketing.

29. Social media engagement (SME)

Social media engagement formula: (Number of interactions/Total number of followers) x 100

Social media engagement measures the level of interaction and involvement customers have with a grocery store’s social media content. This KPI reflects the store’s effectiveness in engaging customers through social platforms. High SME indicates a strong online presence and customer engagement.

How to improve social media engagement:

  • Post regular, relevant, and engaging content.
  • Interact with followers through comments, likes, and messages.
  • Use eye-catching images and videos.
  • Run social media contests and promotions.
  • Leverage influencers and partnerships.
  • Analyze and adjust content based on performance metrics.
  • Engage in trending topics and hashtags.

30. Website traffic (WT)

Website traffic formula: Total number of visits to the website

Website traffic is the total number of visits to a grocery store’s website. It’s an essential metric for gauging the website’s reach and effectiveness in attracting potential customers. High website traffic can lead to increased brand awareness and potential sales.

How to improve website traffic:

  • Implement search engine optimization (SEO) strategies.
  • Create valuable and relevant content.
  • Engage in online advertising and marketing campaigns.
  • Ensure website design is user-friendly and responsive.
  • Utilize social media to drive traffic to the website.
  • Collaborate with bloggers and influencers.
  • Regularly update and refresh website content.

Operational shrink KPIs for grocery stores

Operational shrink KPIs focus on aspects of grocery store operations that can lead to a reduction in profit margins due to internal inefficiencies or errors. These include metrics that track the accuracy of order processing, the rate of product returns, and other factors that can negatively impact the store’s operational effectiveness. By closely monitoring and improving these KPIs, grocery stores can minimize losses due to operational shortcomings, enhance their internal processes, and ultimately protect their bottom line.

Operational shrink can often be an overlooked area, yet it holds significant potential for cost savings and efficiency improvements. Addressing issues in this domain is key to maintaining a healthy and profitable grocery store operation.

31. Cancellation rate (CanR)

Cancellation rate formula: (Number of canceled orders/Total number of orders) x 100

Cancellation rate measures the frequency at which customers cancel their orders. This KPI is important for understanding customer satisfaction and the efficiency of the order fulfillment process. A high cancellation rate can indicate issues with inventory management, customer service, or product quality.

How to improve cancellation rate:

  • Streamline the order processing and fulfillment system.
  • Maintain accurate inventory levels to avoid stockouts.
  • Enhance customer communication regarding order status.
  • Implement flexible and customer-friendly return policies.
  • Train staff to handle orders efficiently and accurately.
  • Regularly analyze cancellation reasons and address underlying issues.
  • Improve the overall shopping experience to reduce the likelihood of cancellations.

32. Complaint resolution time (CRT)

Complaint resolution time formula: Total time taken to resolve complaints/Number of complaints

Complaint resolution time indicates the efficiency with which a grocery store addresses and resolves customer complaints. A shorter CRT is desirable as it reflects effective customer service and the store’s commitment to customer satisfaction. Efficient complaint handling can improve customer trust and loyalty.

How to improve complaint resolution time:

  • Train staff in effective complaint handling techniques.
  • Implement a standardized process for addressing complaints.
  • Utilize customer service software for tracking and managing complaints.
  • Encourage immediate resolution of issues when possible.
  • Regularly review and assess the complaint resolution process.
  • Foster a customer-centric approach among staff.
  • Collect feedback post-resolution to ensure customer satisfaction.

33. Incorrect pricing adjustments (IPA)

Incorrect pricing adjustments formula: (Number of incorrect pricing incidents/Total number of transactions) x 100

Incorrect pricing adjustments measure the frequency of errors in pricing items. This KPI is crucial for ensuring customer trust and satisfaction. Frequent pricing errors can lead to lost sales, customer complaints, and a tarnished store reputation.

How to improve incorrect pricing adjustments:

  • Regularly audit and update pricing information.
  • Implement reliable POS systems to reduce manual errors.
  • Train staff thoroughly on pricing procedures.
  • Utilize barcode scanning technology for accurate pricing.
  • Establish clear communication channels for pricing updates.
  • Regularly review and test the pricing system for accuracy.
  • Encourage staff vigilance and attention to detail in pricing.

34. Number of returns (NoR)

Number of returns formula: Total number of returned items

The number of returns tracks how many items are returned by customers. A high number of returns can indicate dissatisfaction with product quality or a mismatch between products and customer expectations. Managing returns efficiently is key to maintaining customer satisfaction and operational efficiency.

How to improve number of returns:

  • Ensure product quality and freshness.
  • Provide accurate product descriptions and information.
  • Train staff to assist customers in making suitable purchases.
  • Implement easy and efficient return processes.
  • Review return rates by employee for potential internal theft issues.
  • Gather feedback on reasons for returns and address common issues.
  • Regularly review return policies and procedures.
  • Enhance customer communication and support.

35. Number of voids (NoV)

Number of voids formula: Total number of voided transactions

Number of voids refers to the frequency of transactions being voided at the point of sale. This metric helps in identifying issues in the checkout process, potential training needs for staff, or operational inefficiencies. A lower number of voids is generally preferred for streamlined operations.

How to improve number of voids:

  • Train cashiers in accurate and efficient transaction handling.
  • Implement robust POS systems to minimize errors.
  • Regularly review and streamline checkout procedures.
  • Encourage staff communication to address and resolve issues quickly.
  • Monitor and analyze void transactions for patterns or common issues.
  • Foster an environment of accuracy and attention to detail.
  • Implement checks and balances to prevent unnecessary voids.
  • Consider removing void buttons or requiring manager approval to nudge employees towards correct procedures.

Loss prevention KPIs for grocery stores

Loss prevention KPIs are critical for grocery stores to identify and mitigate factors leading to financial loss, such as theft, fraud, or damage. These metrics enable store managers to implement effective strategies to protect their assets and revenues. By closely monitoring loss prevention KPIs, grocery stores can enhance their security measures, improve inventory management, and create a safer shopping environment. Effective loss prevention not only safeguards against immediate losses but also contributes to the long-term financial health and reputation of the store.

Addressing loss prevention is essential in the retail industry, where margins can be tight and losses can significantly impact profitability.

36. Damaged goods sold (DGS)

Damaged goods sold formula: (Number of damaged items sold/Total number of items sold) x 100

Damaged goods sold measures the proportion of inventory sold that is damaged or defective. This KPI is important for assessing the quality of goods at the point of sale and the effectiveness of inventory management. Reducing the sale of damaged goods is crucial for customer satisfaction and store reputation.

How to improve damaged goods sold:

  • Implement stringent quality control checks.
  • Train staff in proper handling and storage of goods.
  • Regularly rotate stock to ensure freshness.
  • Improve packaging and transportation methods.
  • Address issues in the supply chain that lead to damage.
  • Create efficient processes for identifying and removing damaged goods.
  • Foster a culture of care and attention among staff.

37. Discounted transactions (DT)

Discounted transactions formula: (Number of transactions at a discount/Total number of transactions) x 100

Discounted transactions track the frequency of sales made at a reduced price. While discounts can drive sales, a high rate of discounted transactions may impact profitability. Balancing discounts with profit margins is key for sustainable business growth.

How to improve discounted transactions:

  • Strategically plan discount and promotional campaigns.
  • Monitor discount abuse in the Solink app.
  • Analyze the impact of discounts on overall profitability.
  • Implement loyalty programs to offer targeted discounts.
  • Monitor competitor pricing to stay competitive without excessive discounting.
  • Use discounts to clear slow-moving stock efficiently.
  • Train staff to upsell or cross-sell to balance discounted sales.
  • Review and adjust pricing strategies regularly.

38. Fraudulent transactions (FTx)

Fraudulent transactions formula: (Number of fraudulent transactions/Total number of transactions) x 100

Fraudulent transactions measure the incidence of fraud within the store’s transactions. This includes counterfeit currency, credit card fraud, or other deceptive practices. Reducing fraudulent transactions is crucial for protecting revenues and maintaining customer trust.

How to improve fraudulent transactions:

  • Implement advanced security measures at points of sale.
  • Train staff in detecting fraudulent behavior and counterfeit currency.
  • Use technology to verify payment methods and identity.
  • Monitor transactions closely for any signs of unusual activity.
  • Collaborate with law enforcement and banking institutions for prevention strategies.
  • Regularly update security protocols and systems.
  • Foster a vigilant and aware staff culture regarding fraud prevention.

39. Sales reducing activities (SRA)

Sales reducing activities formula: Not quantifiable as a single metric, as it encompasses various activities

Sales reducing activities encompass various operational aspects that negatively impact sales, such as poor customer service, inefficient store layout, or inadequate product range. Identifying and addressing these activities is crucial for improving sales performance.

How to improve sales reducing activities:

  • Regularly train staff in customer service excellence.
  • Optimize store layout for ease of shopping and product discovery.
  • Ensure a diverse and appealing product range.
  • Implement efficient checkout processes.
  • Address any identified gaps in customer service or product offerings.
  • Use customer feedback to identify and rectify sales-reducing issues.
  • Regularly review and update operational strategies.

40. Sales reducing transactions (SRT)

Sales reducing transactions formula: Not quantifiable as a single metric, as it includes various transaction types

Sales reducing transactions are those that result in lower revenue than typical transactions, such as errors in pricing, incorrect product scanning, or transaction voids. Minimizing these incidents is important for maintaining accuracy and profitability.

How to improve sales reducing transactions:

  • Train staff thoroughly in POS system operations.
  • Regularly audit transaction processes for errors.
  • Implement checks and balances at the point of sale.
  • Use technology to minimize manual transaction errors.
  • Monitor transaction trends for any irregularities.
  • Foster a culture of accuracy and diligence among staff.
  • Address and analyze the root causes of sales-reducing transactions.

Solink offers a dynamic solution for tracking and analyzing grocery store KPIs. Its advanced cloud video surveillance and data integration capabilities provide an effective way to monitor key metrics, enhancing decision-making and operational efficiency. 

With Solink, you can gain valuable insights into various aspects of your grocery store’s performance, from sales and customer interactions to operational procedures and security, ensuring a comprehensive approach to business success.

To see how Solink can help grocery retailers, sign up for a demo today.