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We'd like a list of Luxury Beauty Retail Key Performance Indicators for the following categories, at the shop (brick-and-mortar location)-level: 1) industry-standard luxury retail KPI's; 2) Non-commission KPI's; 3) Team-based KPI's; and 4) Quality of customer experience KPI's.
Hello! Thanks for your request to research a list of shop level Luxury Beauty Retail KPIs (key performance indicators).
The short version is that after searching extensively through industry reports and resources, academic research, and trusted news media, I’ve determined that the information you requested is not publicly available because there is no existing industry data/research about shop-level KPIs for luxury beauty retail stores.
However, I was able to learn financial-oriented, customer experience-oriented, and team-based KPIs for luxury stores in general. I also learned KPIs for luxury retail as well as recommended KPIs for modern retail brick-and-mortar stores.
Below you will find a deep dive of my research and methodology.
METHODOLOGY
To complete your request, I looked first for existing market research about established KPIs for luxury beauty retail stores. It was not surprising to see that most resources online focus on digital and omnichannel KPIs for luxury brands and retail. I searched for granular data regarding KPIs for luxury beauty retail stores in the non-commissioned, team-based, and customer experience categories but found no significant information for these categories. However, I was able to find a list of KPIs for luxury retail stores in general. I also found information about suggested KPIs for customer-oriented luxury store management as well as financial-oriented and team-based KPIs. Finally, I was able to find a list of core KPIs for modern brick-and-mortar retail stores from Forbes. Please continue below to see the results of my research.
LUXURY RETAIL KPI
Luxe Talent is a personnel training consultancy that focuses on the fashion, luxury, and retail industries. The agency offers a course in luxury store management with a focus on KPIs. According to the course, the KPIs for Luxury Retail are:
Customer service
• Foot flow
• Conversion Rate
• Units per Transaction
• Average per Transaction
• Mystery Shopping
LUXURY RETAIL STORE KPI
The European Association for Research on Services published the academic research paper "Measuring and Managing Service Performance of Luxury Stores: Development of a Balanced Scorecard" discussing the management of service performance of luxury stores.
The paper observes that deriving universal KPis for luxury brands is not possible due to varieties and particularities of product categories, brand characteristics, and channel policies. However, several KPIs are applicable to most luxury brands. The paper lists the following exemplary KPIs for management of luxury stores.
• Average wrapping costs per revenue
• Average cost of personal customer gifts
• Average cost of additional personnel (wrapping, stock room, doorman, etc.)
• Average cost of repairs
• Average personnel productivity (personnel/sales)
• Percentage of customer data completed
• Average size of dressing rooms
• Average waiting time to be served
• Average time of repair
FORBES' KPI FOR BRICK-AND-MORTAR RETAIL STORES
This February 2017, Forbes published an article discussing basic KPIs for modern brick-and-mortar retail businesses.
• Amount of foot traffic
• Amount of phone calls
• Leads off the store/brands' website
• Amount of texts or interactions with customers
• Teamwork and strategy to increase core KPIs
ADDITIONAL RESOURCES
Here are additional materials for further reading:
Investopedia's Key Financial Ratios For The Retail Industry - also discusses retail shop-level KPIs such as foot traffic, tickets, same store sales growth.
CONCLUSION
To wrap it up, after searching extensively through industry reports and resources, academic research, and trusted news media, I’ve determined that the information you requested is not publicly available because there is no existing industry data/research about shop-level KPIs for luxury beauty retail stores. However, I found lists for financial-oriented, customer experience-oriented, and team-based KPIs for luxury stores in general. I also learned KPIs for luxury retail as well as recommended KPIs for modern brick-and-mortar retail stores.
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