Retail Maths

Here goes the list of key retail maths that's done commonly to judge performance and trends

i) Gross margin = Sales - Cost of good sold

ii) GMROF = Gross Margin ( GM ) / the sqft area ( that delivered this GM)

iii) Markup= the amount by which the cost price is taken up by , for example if the cost is 10 rs and the markup is 25 % then the selling price is 10 +2.5 =12.5

iv ) GMROI= the Gross margin ( GM ) / cost of inventory (that delivered this GM )

v) GMROL = Gross Margin ( GM ) / the amount of labor involved in delivering this GM

vi) OTB ( open to buy ) is an indicator for the merchandiser whether he/she can buy more = Sales + markdown + opening Inventory -closing Inventory for the period

vii) Margin = (Sales-cost)/sales

viii) sell thru ( indicates off takes ) = Sales / ( sales + closing inventory )

ix) upt = Units sold /no of bills generated

x) No of weeks stocks = Inventory / sales per week . of the unit that's being measured

More later !