Is Your Retail Store’s Staff Productive?

Most of your retail company’s success depends upon your staff. The greater they can be at their jobs, the more happy your customers will probably be. But how can you determine whether the employees are “good” at their jobs? Is it dependent on a sense from watching them operate, or do you have information at your fingertips that verifies their productivity?

Unless of course you have figures to analyze, there’s no way to be sure about which of your workers are really effective. Quite a few modest merchants leave this to chance, uttering a few words and phrases of reassurance to motivate their staffs to execute. Unfortunately, this approach doesn’t deliver data that could be monitored; and if it can’t be followed, it is difficult to identify difficulties.

This article will talk about personnel efficiency from an analytical viewpoint. We will use a hypothetical example all through to show how to determine who amongst your staff is performing well, and who may need training and direction.

What’s The Dollar Per Sale Amount?

First, let us lay the foundation. Imagine three people are employed in your retail store: Anthony, Delores, and Steve. During the last month, Anthony’s total gross sales were $16,000 across 75 sales through which he sold 100 items. He worked 160 hours (full-time), and earned $3,200. During the same period, Delores sold $19,000 worth of merchandise across 90 sales, which involved 180 products. She labored 160 hours for which she was compensated $2,900. Steve earned $10,500 throughout 40 transactions in which he sold 85 items. He worked only 70 hours (part-time), and was paid $1,900.

The first quantity to determine is the amount of income each generated on a per-transaction base. Anthony generated $213 ($16,000 divided by 75), Delores generated $211, and Steve generated $263. From these numbers, Steve would seem more productive than the others.

Are Your Clerks Selling Enough In Each Transaction?

The next amount to calculate is the average quantity of items each order contained. We can see from the presumptions in our illustration that Anthony sold typically 1.33 items (100 divided by 75), Delores sold an average of 2 items, and Steve sold an average of 2.13 items per sale; steve once again appears to be the most successful staff member.

These numbers may suggest the opportunity to train Anthony in cross-selling since he lags behind Delores and Steve. If he improves in convincing consumers to include complementary products to their baskets, he will increase his typical order volume along with the shop’s earnings.

How Much Revenue Is Produced Per Hour?

After that, it is beneficial to determine the amount of revenue each worker generates per hour. Recall that Anthony and Delores labored 160 hours during the last month while Steve worked 70 hours. With all this, Anthony generated $100 each hour ($16,000 divided by 160), Delores earned $118.75 per hour, and Steve earned $150 each hour. Steve once again seems to have outperformed his co-workers.

A side note is worth making. Because Steve works part-time, it’s sensible to assume he’s out on the floor throughout peak hours. Hence, generating more earnings each hour than Anthony and Delores is expected.

Is Your Staff Taking Care Of Their Duties?

The last figure to determine is your cost of selling based on the amount you paid the employees. This is best represented as a fraction, and is discovered by dividing every person’s revenue over the last 30 days by that person’s total sales. Anthony sold $16,000 worth of merchandise, and was paid $3,200.

Thus, your cost of selling via Anthony is 20%. Your cost of selling via Delores is 15.3% ($2,900 divided by $19,000). With Steve, it is 18.1%. Here, Delores appears to be the most productive employee.

The purpose of undergoing this procedure is to determine areas for improvement. To do that, it’s vital that you determine objectives for your personnel. As an example, you might want your workers to produce a particular amount of revenue each hour. If one or more people fail to do so, it is worth trying to determine the reason. By continuing to keep track of these numbers, and providing instruction when necessary, you can increase the income of your retail business. If you don’t, you might be finding yourself facing a store liquidation.

Learn more about store liquidation at