Retail funda !

In continuation with our previous post about the AND approach to business of share and profitability .
here is our take on this AND principle getting implemented in retail .

retail dynamics ,is not about getting walkins alone but in doing walkins AND the more per customer act too!

so the game is like in most business is to get more customers and more per customer !


here is the simple equation of retail business growth.

sales = cash memo size (cms) (x) number of converted custom

(converted customers =bills cut /number of customers )

cms (cash memo size)= sales/number of bills cut

sales going up ,is dependent among other things ,on the "upt" factor ,upt is nothing but units per transaction .higher the upt ,normally means higher cash memo size too.


This is how businesses can use this dynamics ...




so if walkins are falling ,and the cms is growing ,along with upt growing ,with conversions holding then you should be ok .




if sales needs to go up then ,you need to get more walkins ...hold or grow conversion ...and drive upt up ,so that your cash memo size goes up .


ideally both upt and cms have to go up ,as upt can b driven by low value items too.


so what drives upt ...its a mix of action on training,motivation,dispensing at cash counters ,visual merchandising,and target setting at the counters ,its not easy for sure ! Try it ,during this festival season .