Last updated on Feb 17, 2024

How can you measure the success of new store development in urban areas?

Opening new stores in urban areas can be a challenging and rewarding strategy for sales growth. However, how do you know if your new store development is successful and worth the investment? In this article, we will discuss some key metrics and methods to measure the performance and potential of your new urban stores.

1 Sales volume and growth

One of the most obvious indicators of success is the sales volume and growth of your new stores. You want to track how much revenue and profit your new stores generate, and how fast they increase over time. You can compare your new stores with your existing ones, or with industry benchmarks, to see how they perform relative to your expectations and goals. You can also segment your sales by product category, customer type, or location to identify the strengths and weaknesses of your new stores.

Add your perspective

Ilhan Karacam

General Manager | Market Strategy, Sales Management, Business Development
I look at foot traffic, sales revenue, customer satisfaction, and market share. Tracking these metrics helps me understand how well the store is doing and what customers like. Comparing with other stores and competitors gives me a clear idea of success and helps me decide on future stores.
Like
Report contribution
RaviKumar Patel

Business Development Specialist | Custom Software Development | Skilled in B2B Partnerships, Strategic Sales, and Market Expansion
Assessing sales volume and growth is crucial for gauging the health of new stores. It's important to note that early-stage growth may not always reflect long-term potential. Seasonal trends, promotional events, and local economic factors can skew initial figures. Therefore, while these metrics are valuable, they should be analyzed in conjunction with longer-term trends and qualitative feedback to provide a comprehensive picture of a store's performance.
Like
Report contribution
Ahmad Husain

Manager at LuLu Group International - Wholesale & Distribution
When it comes to measuring the success of new store development in urban areas, there are several key indicators to consider: 1. Sales Performance 2. Foot Falls 3. Customer Feedback 4. Market Share 5. Repeat Business 6. Community Engagement 7. Profitability By monitoring these indicators, you can get a comprehensive picture of the success of new store development in urban areas and make informed decisions about future investments and strategies.
Like
Report contribution

2 Customer acquisition and retention

Another important metric to measure is the customer acquisition and retention of your new stores. You want to know how many new customers you attract, and how many existing customers you retain, in your new urban markets. You can use various methods to collect and analyze customer data, such as loyalty programs, surveys, CRM systems, or social media. You can also calculate the customer lifetime value (CLV) and the customer acquisition cost (CAC) of your new stores to assess their profitability and efficiency.

Add your perspective

RaviKumar Patel

Business Development Specialist | Custom Software Development | Skilled in B2B Partnerships, Strategic Sales, and Market Expansion
Customer acquisition and retention are pivotal for the success of new stores in urban markets. Leveraging CRM systems allows for precise tracking of customer interactions, providing insights into purchasing patterns and preferences. Calculating CLV and CAC offers a clear financial picture of customer relationships and acquisition efficiency. These metrics are crucial for strategic decision-making and can guide marketing efforts to optimize ROI. Additionally, engaging with customers through loyalty programs and social media can foster a community around the brand, further driving retention and organic growth.
Like
Report contribution

3 Market share and penetration

A third metric to measure is the market share and penetration of your new stores. You want to know how much of the urban market you capture, and how much potential you have to grow. You can use market research, competitive analysis, or geographic information systems (GIS) to estimate the size and characteristics of your target market, and the share and position of your competitors. You can also use sales forecasting, scenario analysis, or simulation models to project the future demand and supply of your new stores.

Add your perspective

4 Brand awareness and reputation

A fourth metric to measure is the brand awareness and reputation of your new stores. You want to know how well your brand is recognized and perceived in your new urban areas. You can use online tools, such as Google Analytics, social media analytics, or online reviews, to monitor and measure the online presence and sentiment of your brand. You can also use offline tools, such as focus groups, interviews, or mystery shopping, to gather and evaluate the offline feedback and experience of your brand.

Add your perspective

5 Innovation and adaptation

A fifth metric to measure is the innovation and adaptation of your new stores. You want to know how well your new stores adapt to the urban environment and customer preferences, and how much they innovate and differentiate from your competitors. You can use metrics such as the number and type of new products or services, the number and frequency of changes or improvements, or the level and impact of creativity or experimentation. You can also use qualitative methods, such as observation, storytelling, or case studies, to capture and showcase the unique features and benefits of your new stores.

Add your perspective

6 Employee engagement and satisfaction

A sixth metric to measure is the employee engagement and satisfaction of your new stores. You want to know how happy and motivated your new store staff are, and how well they perform and contribute to your sales goals. You can use metrics such as the turnover rate, the absenteeism rate, the productivity rate, or the performance appraisal score. You can also use methods such as surveys, interviews, or recognition programs, to collect and improve the feedback and morale of your new store staff.

Add your perspective

Derry Sakti

Entrepreneur & Business Leader | Solving Daily Business Challenges | Empowering SMEs for Growth
Also consider different profile and representative of your employee; old member, new member, cross functions, local employee vs non-locals.
Like
Report contribution

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

Add your perspective

Ricardo Chang

Strategic Business Manager│Business Development │Sales & Commercial │ B2B & B2C │ Disruptive Innovator
En mi experiencia, se podría medir con los siguientes indicadores: Rentabilidad económica: Análisis de la rentabilidad de las tiendas en comparación con el promedio de la industria y con otros centros comerciales de la misma región. Tasa de ocupación: Número de tiendas ocupadas en comparación con el total de espacios disponibles en el centro comercial. Afluencia de clientes: Número de visitantes y su frecuencia de visita. Satisfacción de clientes: Encuestas y análisis de redes sociales para medir la satisfacción de los clientes con el centro comercial y las tiendas.

Translated
Like
Report contribution
Derry Sakti

Entrepreneur & Business Leader | Solving Daily Business Challenges | Empowering SMEs for Growth
More importantly, measure vs what the company goal is, especially in terms of the particular branch of stores you are opening. Sometimes the goal and objective is just for optics or image for the company, hence numbers are not really important. Sometime the goal is to be the initiator or opening the footprint, hence speed is important. Understanding the goal and the "role" is very important
Like
Report contribution

How can you measure the success of new store development in urban areas?

1

2

3

4

5

6

7

1 Sales volume and growth

2 Customer acquisition and retention

3 Market share and penetration

4 Brand awareness and reputation

5 Innovation and adaptation

6 Employee engagement and satisfaction

7 Here’s what else to consider

Sales Management

Rate this article

Thanks for your feedback

More articles on Sales Management

More relevant reading

How can you measure the success of new store development in urban areas?

1

2

3

4

5

6

7

1 Sales volume and growth

2 Customer acquisition and retention

3 Market share and penetration

4 Brand awareness and reputation

5 Innovation and adaptation

6 Employee engagement and satisfaction

7 Here’s what else to consider

Sales Management

Rate this article

Thanks for your feedback

Explore Other Skills