Why Oh Why Are We Not Meeting Our Fashion Sales Targets?

I had a call this week from a fashion store owner who doesn’t work in the store himself (it’s under management). He was frustrated with the low numbers of paying customers even after placing "Up to 75% off" signs on the store windows. This business owner was convinced that the shopping centre was doing a lousy job of attracting people.

But you see, there are two aspects to obtaining paying customers… 1) Store traffic and, 2) Sales conversion.

Fashion retail sale sign

I had a feeling that the staff weren’t doing such a good job of selling.

The only way to find out is to measure TRAFFIC AND SALES. From that the sales conversion can be worked out.

For most fashion retailers the sales conversion rate will be between 10% to 40%. That is, out of 10 people that walk-in, one to four will buy.

Whoa, I bet you’re telling me your sales conversion is much higher. Okay, prove it!

Below is a sample store browsers chart. Rule a single page with 6 columns and mark one line for each person that walks into the store every day over one week (count a couple and families as one person).

Then check your sales numbers at the end of the week (from your POS or till). Divide # sales / # browsers and multiply by 100. That’s your conversion as a percentage.

Then you’ll know if your staff are doing a good job or not. If your conversion is below 10% you’ve got a BIG problem!

P.S. The more accurate way of obtaining your store traffic numbers is to install an automatic people counter – I have discussed this on a previous post on this website.

Fashion retail store success

About the author: I’m Mark Fregnan, founder of Smart Fashion Marketing (Kinetic Media & Marketing) – an Australian consulting business that assists fashion retailers to increase sales and improve business value. Because we have a passion for marketing, our retail business clients enjoy better store and label brand exposure, greater cash-flow and more time off to enjoy the finer things in life!
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