Retail math refers to a set of formulas used by retail businesses in their day-to-day operations to calculate certain retail KPIs and metrics that measure the performance of the business.

Importance of Retail Math for Managers & Owners

It is very important for store owners and managers at any retail business to understand and practice using the different retail math formulas on a regular basis, in order to be able to make the right decisions for the business.

There are different sets of formulas for each retail function, and professionals need to familiarize themselves with the relevant retail math concepts related to their function. For example, the sales and operations team at the retail business will be dealing with a different set of formulas than the buyers and merchandisers. However; a lot of the key metrics in each function affect other functions as well, so it is important to be familiar with all the relevant metrics, and understand the key connections between them.

For retail owners and entrepreneurs, it is important to be familiar with all the formulas, in order to be able to manage the whole business and assess the performance of your teams.

Below are some resources that will get you started with retail math.