Retail strategy: the metrics that matter for 2021

By Tom Summerfield on January 6, 2021

As we enter a new year and leave 2020 behind us, those working in the world of retail will be focusing on their 2021 retail strategy, gearing up for a calendar year clouded by uncertainty as the COVID-19 pandemic continues to disrupt everyday lives and business processes.

We’ve seen a number of new trends emerge in recent months, and this will continue to be the case as shoppers adapt and customer behavior continues to change.

You’re no doubt back at your desk (sorry – your kitchen table!) after the Christmas period, and your attention will now be on preparing for what’s to come over the next twelve months, from hitting the ground running to planning those all-important Black Friday campaigns (yes, it’s time to start thinking about those already!)

Everyone needs a day or two to get back into the swing of things after the festive holidays, so as a starter for ten, we’ve outlined the ultimate list for those working in the retail sector: the metrics that matter for your 2021 retail strategy. So, whether you work in sales and marketing, merchandising and buying, or supply chain and fulfillment, take a look at the below – if you can win in these areas in 2021, you’ll have the edge on your competitors and be in the best place possible to navigate through another difficult year.

Retail strategy 2021: marketing metrics

Fundamentals: Day-to-day metrics

Lower your bounce rate
Increase views of pages per session
Drive higher revenue-per-click
Lower your unsubscribe rates
Increase click-through-rates
More items added to baskets

Key indicators: Mid-level metrics

Control your trading ability
Increase purchase frequency
Increase average order values
Increase customer lifetime value
Reduce customer acquisition costs

Strategic: High-level management metrics

An effective channel-mix strategy
Converting one-time users into returning users
Cost savings

Merchandising metrics that matter in 2021

Fundamentals: Day-to-day metrics

Rate of sale
Weeks of cover
GP%
Gross profit variance

Key indicators: Mid-level metrics

EBIT contribution by line
GPV vs GP%
Markdown cycle
Net margin/profit
Average Transaction Value (ATV)
Range planning/space planning
Pounds per square metre/foot
Sell-through

Strategic: High-level management metrics

Time saving
Working capital employed (ROCE/GMROI)
Regional web sales vs store locations
Promotions to ease working capital

Supply chain: key metrics for your retail strategy

Fundamentals: Day-to-day metrics

Average daily pack wait time
Cost-per-minute and daily pack wait time cost
Average wave closure time
Cost-per-minute of wave
Average pick time and number of picks of hour
Average sort time
Average time between picks
Put-away time
Throughput per item

Key indicators: Mid-level metrics

Picks per person, per hour
Wave planning
Pick and pack efficiency
Pick face optimization
Distribution resource planning
Put-away strategy
Zone planning
Workforce planning
Truckload utilization
Transport planning
Pick-route planning
Mis-service
Adherence to customer SLAs and service upgrades
Capacity and utilization planning
Cost per wave
Operational downtime
Returns planning and reverse logistics
Time to receiving and pick location

Strategic: High-level management metrics

Cost per item
Item throughput
Total order numbers
Expedited service
Cost of mis-service and unfilled orders
Increased return on capital employed (ROCE)

Hopefully the majority of these metrics will already be on your business’ radar for the year to come, but this list should act as a handy checklist for you and your colleagues as we all navigate our way through the coming months.

If you think we’ve missed any important ones, or would like to chat through some of the ways we’re helping the likes of ASOS, boohoo and PrettyLittleThing win big with these metrics, we’d love to hear from you!