A Appendix: Measure Calculations
This appendix provides additional information on a few of the core retail calculations to help aid your understanding. It is important to understand that a particular measure can be calculated in many ways because it is impacted by many different input measures. When a value is changed that impacts other editable values, the impacted measures that then need to be recalculated are protected so that you cannot also update those values. This prevents a deadlock or circular calculation in which you do not know where to start recalculating.
| Measure Label | Measure Calculation | Notes |
|---|---|---|
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Margin |
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GM R |
Net Sales R - COGS |
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COGS |
(Net Sales R + Mkd R + Shrink R) * (1 - CMU%) |
Elapsed periods add COGS adj R. |
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COGS exc VAT C |
COGS C / (1 + VAT C %) |
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CMU% |
(BOP R + Receipts R - Shrink R - MOS R- Inv Devaluation R) -(BOP C + Receipts C - Shrink C - MOS C)) / (BOP R + Receipts R - Shrink R - MOS R- Inv Devaluation R) |
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Net GM R |
GM R + Vendor Funds R + Royalties R - Restocking Cost R - MOS R - Mkd Due to W/F |
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Net GM % |
Net GM R / Net Sales R |
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GM R exc VAT |
Net Sales R exc VAT - COGS exc VAT C |
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GM R% exc VAT |
GM R exc VAT / Net Sales R exc VAT |
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Net GM R exc VAT |
GM R exc VAT + Vendor Funds R + Royalties - Restocking Cost - MOS R/(1+VAT%) - Mkd Due to W/F/(1+VAT%) |
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Net GM R % exc VAT |
Net GM R exc VAT / Net Sales R exc VAT |
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Sales |
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Sales R |
Sales Reg+Promo R + Sales Clr R |
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Sales R |
Sales U * Sales AUR |
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Sales U |
Sales R / Sales AUR |
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Sales AUR |
Sales R / Sales U |
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Net Sales R |
Net Sales Reg+Promo R + Net Sales Clr R |
An edit to Net Sales will proportionally spread the change to Net Reg+Promo and Net Sls Clr. |
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Net Sales Reg+Promo R |
Sales Reg + Promo R - Net Return Reg + Promo R |
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Returns R |
Returns Reg + Promo R + Returns Clr R |
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Returns R % |
Returns R / Sales R |
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Net Return R |
Return R + Return Back to Online R |
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Markdowns |
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Mkd R |
Reg+Promo Mkd R + Clr Mkd R |
This is specific for planning the Promotional Markdowns |
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Mkd R |
Mkd % * Net Sales R |
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Mkd % |
Mkd R / Net Sales R |
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Mkd Due to W/F |
W/F Mkd R * % Owned by Retailer |
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Inventory Devaluation |
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Inv Devaluation R |
Reg+Promo Inv Devaluation R + Clr Inv Devaluation R |
Inv Devaluation metric is mainly for planning the permanent markdowns and existing markdown (Mkd R) are specifically for planning Promotional Markdowns |
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Inv Devaluation R % |
Inv Devaluation R / BOP R |
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Inv Devaluation Reg + Promo R% |
Inv Devaluation Reg + Promo R / (BOP Reg + Promo R- Move to Clear R) |
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Inv Devaluation Clr R % |
Inv Devaluation Clr R / BOP Clr R + Move to Clear R |
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Inventory |
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EOP R |
EOP Reg+Promo R + EOP Clr R |
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EOP Reg+Promo R |
BOP Reg+Promo R + Receipts R - Net Sales Reg+Promo R - Mkd Reg+Promo R - Shrink R - Misc Adj R - Move to Clr R + Inv Adj R - Pick Up in Store Reg + Promo R - Ship to Customer Reg+Promo R- Inv Devaluation Reg + Promo R |
For Merch Target/Merch Plan. See EOP calc for Location Planning. |
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EOP Clr R |
Clr BOP R - Net Sales Clr R - Clr Mkd R - MOS R + Move to Clr R- Inv Devaluation Clr R |
For Merch Target/Merch Plan. See EOP calc for Location Planning. |
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EOP R (For Location Plan) |
Receipt R + BOP R - Net Sales R - Markdown R - Shrink R + Transfer In/Out R |
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Receipt R |
EOP Reg+Promo R - BOP Reg+Promo R + Net Sales Reg+Promo R + Reg Promo Mkd R + Shrink R + Misc Adj R + Move to Clr R - Inv Adj R + Inv Devaluation Reg + Promo R |
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Forward Cover R |
Forward cover uses an internal function which counts the number of future periods which EOP can cover the future Net Sales plus Markdown. As the end of the calendar horizon in the segment is reached, the future net sales and markdown do not exist to calculate cover. In this case, the function copies the Net Sales plus Markdown for the segment's calendar horizon (such as the half) into the future to enable calculating a forward cover value. |
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Forward Cover Week |
This is same as forward cover measure with an additional benefit that it shows the aggregated level in number of weeks using the PET agg method. This helps you to understand the forward cover inventory at week level only even when you look at the calendar at the aggregated / parent level. |
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On Order |
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Net On Order R |
On Order R + On Order Adj R |
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OTB R |
For Un-elapsed: CP EOP R - WP EOP R + WP Receipts R - Net On Order R Elapsed: 0 |
For Targets, CP is labeled as Tgt. Therefore, in the given calculation, CP EOP equates to Tgt EOP. |
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On Order Adj C |
On Order Adj R * (1 - On Order Adj MU %) |
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Net On Order MU % |
(Net On Order R - Net On Order C) / Net On Order R |
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Key Performance Indicators |
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Avg Sales R per Location |
Net Sales R / # of Location count |
Count of Locations open/active. |
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Cum Turn R |
sum(Sales R) / Cum Avg Inv R |
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Sell Thru R % |
Sales R / (BOP R + Receipts R) |
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Stock to Sales Ratio R |
BOP R / Sales R |
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Wp var to LY % |
(Wp - Ly) / abs(Ly) |
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Fulfillment |
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Pickup In Store R |
Direct Channel: (Sales R * BOPIS %) * -1 Brick & Mortar: Sales R (of Direct Channel) * BOPIS % |
Buy Online Pickup in Store % (BOPIS %) |
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Ship to Customer R |
Direct Channel: Sales R (of B&M Channel) * BSSC % Brick & Mortar: (Sales R * BSSC %) * -1 |
Buy in Store Ship to Customer % (BSSC %) |
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Buy Online Return In Store R (BORIS R) |
Round(Return R (of Direct Channel) / BORO %) - Return R (of Direct Channel) |
Buy Online Return Online % (BORO %) |
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Return Back to Online R |
Direct Channel: BORIS R * % BORIS back to Warehouse Brick & Mortar: (BORIS Return R * % BORIS back to Warehouse) * -1 |
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Restocking Cost R |
Direct Channel: (Return U * Warehouse Restocking $/U) + (Return Back to Online U * Store to Warehouse Restocking $/U) Brick & Mortar: (Return U + Return Back to Online U) * Store to Warehouse Restocking $/U |
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