The 5 Key KPIs to Excel in Retail

Do you sell your products in supermarkets and want to optimize your sales strategy while maximizing your revenue? You've come to the right place.

To achieve this goal, it is essential to understand what influences the buying process, to ensure optimal visibility of your products on the shelf, and to evaluate the actual impact of your in-store sales operations. And for that, monitoring the right key performance indicators (KPIs) is critical.

‍In this article, we will see why tracking your KPIs in supermarkets is essential and what are the 5 key indicators that every sales representative must monitor to improve their performance.‍

Ready to boost your results? Let's go!

Why is it essential for a brand to track its KPIs in retail?

Retail is an ultra-competitive environment, where up to 30,000 references compete for a spot at the end of an aisle. In this context, standing out and being chosen over your competitors is not a matter of luck: you must measure the impact of your sales activities and optimize them continuously. In fact, according to Forrester, companies that actively leverage their data are 58% more likely to exceed their financial goals than those that do not.

Why? Because a rigorous analysis of the right data not only helps to increase revenue, but also to reduce costs. A solid understanding of in-store performance allows you to answer the following strategic questions:

• Which channels, banners, and stores deserve the most investment?

• What are the actual needs of sales reps to achieve their objectives?

• How can we ensure better profitability of field visits?‍

In other words, tracking your retail KPIs means transforming raw data into concrete and profitable decisions.

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The concrete benefits of tracking these KPIs

By tracking the right indicators, you can:

✅ Optimize your profitability and sales performance

→ Understand what is working and what needs to be adjusted.

For example, by monitoring revenue per point of sale, a brand can increase its investments in the top-performing stores (demos, promotions, merchandising) and implement corrective actions in underperforming stores.

‍✅ Improve store visibility and execution

→ Ensure that your products are well-positioned and comply with the agreements negotiated with retailers.

Tracking KPIs like shelf availability (out-of-stocks, facings, shelf presence) helps avoid lost sales due to poor inventory management or non-compliance with commercial agreements.

✅ Anticipate trends and adapt your offering

→ Detect market developments through field data.

By analyzing sales by segment, region, or period, you can adjust your offer and positioning. For instance, if a product is highly successful in a specific region, it might be relevant to boost its local distribution.

✅ Measure the impact of promotions and sales campaigns

→ Evaluate the effectiveness of promotional activities and adjust strategies.

Promotions are common in retail, but they still need to have a real impact. Tracking KPIs like promotional conversion rate, advertising campaign ROI, or impact on market share helps optimize investments and avoid unnecessary expenses.‍

✅ Strengthen the relationship with retailers

→ Negotiate better and justify your requests.

With concrete data on product performance, brands can negotiate an increase in shelf space, better shelf placement, or even stronger promotional support.‍

✅ Prevent the risk of delisting

→ Anticipate weak signals and act before it is too late.

A drop in sales, frequent out-of-stocks, aggressive competition... all of these factors can jeopardize your presence on the shelf. By tracking the right indicators, you can react before a retailer decides to delist you.

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Do not track everything!

There are many performance indicators in retail. You could track an infinite number of them... but that would be counterproductive! Too many indicators = too much information = wasted time.‍

Instead of creating endless dashboards, it is better to rigorously track a few essential KPIs rather than tracking twenty of them halfway.‍

And indeed, if you had to track only five, here are the ones that will make the difference...

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The 5 performance indicators to absolutely track for a brand selling in supermarkets

KPI 1: Numerical Distribution (Assortment)

Numerical distribution is a key indicator in retail. It represents the ratio between the number of references actually present on the shelf and the expected number according to the mandatory assortment (assortment defined with the banner). This indicator allows you to evaluate the presence of your products on the shelf and, by extension, that of your brand. 

Low numerical distribution means that some of your products are missing from the shelves when they should be there, and therefore, they cannot be purchased. The result? Less visibility, fewer purchases, lost revenue, and potentially, a risk of delisting.

How to calculate numerical distribution (assortment)?

Formula: Numerical Distribution (Assortment) = (Number of references on shelf / Number of references planned in the assortment) x 100

To refine your analysis, it is useful to segment this indicator:

• By product;

• By category;

• By brand;

• By banner…

📌 To dive deeper into the topic, read our full article on this performance indicator: Numerical distribution in retail - calculation, analysis, and challenges

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How to collect Numerical Distribution data?

The reporting of field information is one of the most effective ways to measure numerical distribution. Your sales reps and territory managers can check directly in-store if the references are indeed present on the shelf. To do this, they simply need to fill out their store audit in their CRM.‍

KPI 2 : Store Numerical Distribution

Store numerical distribution measures the percentage of stores that actively sell your products. In other words, it measures the presence of your products - and therefore your brand - in points of sale compared to a targeted sample. 

This KPI is essential for evaluating your market coverage: the higher your distribution, the more available your product is to consumers, and therefore the more your sales opportunities increase. Conversely, low distribution means your product is under-distributed, which can limit its visibility and growth potential.

How to calculate store numerical distribution?

Formula: Store Numerical Distribution (%) = (Number of stores with the product / Total stores in the category) x 100

As with assortment tracking, we recommend refining your analyses by breaking down this KPI by key dimensions: by product, banner, category…

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Why track store numerical distribution?

Regularly monitoring distribution helps identify banners where your presence is low. One strategy can then be to prioritize the points of sale of a banner during the sales rounds of your territory managers to increase your presence.‍

Numerical distribution is also useful during commercial negotiations: the stronger your distribution, the more leverage you have with retailers to negotiate product placement, promotions, or the addition of new items.

Finally, during a product innovation launch, tracking the ND and WD of a new product helps measure how quickly and effectively it is being placed on the shelf.

KPI 3 : Coverage Rate

The coverage rate is a key indicator for measuring the frequency and regularity of field visits made by your sales representatives and territory managers. It reflects the level of tracking of your points of sale.

Without field monitoring, it is difficult to optimize the presence and performance of your products on the shelf. A high coverage rate shows a well-established visit strategy and a good understanding of the market. Conversely, a low coverage rate can indicate a lack of field reporting, an inefficient organization of visits, or a need to improve the tools used in the field.‍

How to calculate the coverage rate?

It is the number of audits completed over a period, divided by the number of stores visited.

Formula: Coverage Rate = (Number of audits / Number of visits) x 100

To refine the analysis, it is interesting to cross-reference coverage with other indicators, such as:

• The numerical distribution rate → To ensure that the stores visited are truly strategic.

• The out-of-stock rate → To identify points of sale where corrective actions are needed.

• The quality of audits → By checking if the data collected is usable (photos, detailed comments…).

Why track sales coverage?

A good coverage rate ensures that your sales reps are investing their time in the right place. By analyzing this indicator regularly, you can spot areas where follow-up is insufficient and adjust routing to maximize the impact of visits. It also helps optimize the allocation of your sales force efforts by concentrating resources where they are most strategic.

Finally, even though it can be uncomfortable, a rigorous monitoring of coverage can also reveal potential gaps within your field team.

KPI 4 : Out-of-Stock Rate

The out-of-stock rate measures how frequently your products are missing from the shelves.

A high out-of-stock rate means your products are frequently unavailable. It is a red flag: either demand is underestimated, or there is a supply chain failure. Conversely, proper management of this KPI ensures that your products are always available to consumers.‍

How to calculate the out-of-stock rate?

Formula: Out-of-Stock Rate = (Periods out of stock / Total periods) x 100

Why track this KPI?

The out-of-stock rate is particularly important during promotional activities. A low out-of-stock rate indicates excellent inventory management and effective anticipation of demand. It also shows good collaboration between the brand and the banner or store hosting the promotion.

KPI 5 : Number of Facings and Share of Shelf

The number of facings corresponds to the number of products directly visible on the shelf, facing the consumers.

It reflects the space your products occupy on the shelf. The more facings you have, the more visible your products are and accessible to consumers. It is a key indicator to measure the visual impact of your products in-store.

The share of shelf (SOS), on the other hand, is a shelf and space management indicator. It is directly linked to facings. It measures the proportion of space occupied by a brand or product on a given shelf compared to the total space available for that category. In other words, share of shelf measures the space dedicated to your products compared to the total available space for a given product category.

How to calculate share of shelf?

Formula: Share of Shelf (%) = (Shelf length of your products / Total shelf length of the category) x 100

A high share of shelf can indicate a strong market presence and a better chance of attracting buyers' attention.‍

Why track the number of facings and share of shelf?

These indicators are directly linked to your sales performance. A low number of facings or an insufficient share of shelf can significantly reduce your chances of being seen and chosen by consumers. Conversely, a strong presence on the shelf boosts your appeal and your dominance in the category.‍

How to measure these indicators in-store?

Once again, thanks to your territory managers. By filling out their shelf audit, they collect the number of facings, the number of items… and Sidely automatically calculates the share of shelf. SOS is visible on your audits and reports.

If you want to track your sales performance in retail but don't know where to start: track these 5 KPIs. They allow you to accurately assess your store presence, optimize your supply chain, and adjust your strategies in real time. But above all, they are all divisible and adaptable to your analyses. They can be calculated by product, by sales rep, by brand, by category, by store, by geographic area, by banner…

‍Remember, detailed and regular analysis is the key to success. So, ready to turn this data into winning actions? Sidely can help: contact us