ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

The Mantra Of Success In Retail

Updated on July 19, 2015

In today's world it is hard to survive in any field of industry,as today there is a rat race in all the fields. So to survive first we have to know what actually is "Retail" and what are the peripherals of the Retail Industry so that we can act accordingly

In today's world retail industry had proved itself as one of the biggest market for jobs. And as more and more retail industry are coming in India the level of knowledge and skills required had gone very up. So with the help of this blog you will be aware of some important keywords of the industry and will help you to take one step ahead of others

A general view of retail store
A general view of retail store | Source

Terminologies

For a Fresher , who is not aware of the general terminologies of the retail industry ,these terms will help them to understand the basic functionality of the business. these terms are as follows :-

  1. L2L
  2. YTD
  3. MTD
  4. SSPD
  5. Basket Size
  6. KPI
  7. CBA

L2L

L2L basically stands for Like to Like. This term basically means we compare a specific month sale with the sale of same month in previous year. To be more precise and clear let us take an example. The Sale of Jan 2014 and Sale of Jan 2015 , this kind of comparison is called Like to Like comparison.In any retail industry we generally compare our growth or d growth comparing the sale of last year , like if in the month of July 2014 a store did X Lakh then on an average next year in the month of July if we would be taking the target then the minimum target would be (X+20%of X) lakh. If we are planning to make any strategic plan for a month then the first and foremost point is the target of the month.

Depending upon the industry to industry the percentage of growth that i have taken may vary i.e 20%. There are different terms which are used for the same concept i.e it is also called as Year On Year etc.



YTD

YTD stands for Year Till Date. The financial year starts from April , so the total sale value that a store or an industry had achieved. For Example take the following figure :-

April 2015 - 50 lakh

May 2015 - 65 lakh

June 2015 - 55 lakh

So if we talk about YTD figure, it is = (50+65+55 ) lakh

The total YTD figure includes the figure starting from April till March of an year.

MTD

MTD stands for Month Till Date. Similar to YTD it is the number achieved by any store till a specific date of the month starting from 1st of that month. For example if today is 15th of July then the MTD figure would be the total sale of 1st july till 15th july.

SSPD

SSPD Stands for Sale per Square feet Per Day. It is one of the most important term which is used in the retail industry. It is one of the term which helps in analyzing the statistics of the retail store. First the formula of SSPD = sale of the whole month /(total carpet area*30).

with the help of this formula we can calculate how much sale per square feet sale is the store generating. With the help of the data we can analyzed the performance of the store , the trend of the store, and accordingly plan can be formulated.

To make it simpler lets take an example :

let us consider a store with the following statistics , Store size 5000 sq feet , sale in a month Rs 15000000. So the SSPD will be 15000000/(5000*30) = 100. So the average sale that 1 sq feet tile generate is Rs 100.


Basket Size

The basic meaning of the Basket size is the average number of article per bill. For example let us consider a situation where in a store the total number of bills which were cut were 20 and the total number of articles which were sold in whole day was 40. So the basket size would be :-

Basket Size = total number of article sold/ total number of bills cut

So basket size = 40/20 = 2

Which shows that the average number of article sold per bill is 2.

KPI

It stands for Key Performance Indicator. It is the set of indicator on which the performance is measured. In simple terms the KPI generally indicates all those parameters that helps the strategist to analyze the performance of the store


CBA

It stands for Cost before advertisement. The basic meaning of this term is that it calculates the income of the store after deducting all the kind of expenses which incurs while operating at the store. There are different kind of expenses that a store incurs depending upon the type of store. In practicality there are basically there kind of retail store, which are:-

  1. COCO- Company owned Company Operated
  2. COFO- Company owned franchise operated
  3. FOCO- franchise owned Company operated
  4. FOFO- Franchise operated Franchise operated

For Top management the point of evaluating the performance is based on the CBA.

Your View on Retail Oppertunity

Had Retail Industry today became most promising job providing sector.

See results

Comments

    0 of 8192 characters used
    Post Comment

    • kunal107 profile imageAUTHOR

      kunal 

      14 months ago from Delhi

      thank you

    • profile image

      akshay 

      3 years ago

      nice article on retail

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)