Sales Strategy
The Jeweler’s Scorecard: 5 KPIs That Separate Top Performers August 29, 2025 (0 comments)
Lviv, Ukraine--A focused set of KPIs gives jewelry store owners clarity on where money is going and how efficiently the business is running. These metrics guide decisions on pricing, inventory, staffing, and customer engagement.
According to an article by FinModelsLab, benchmarks such as inventory turnover ratios, gross margin targets, and sales-per-square-foot ranges are widely used by jewelers to measure performance and competitiveness.
The Five Core KPIs
KPI 1: Inventory Turnover Ratio
Measures how often inventory sells and is replenished. Jewelry stores typically see 1–3 turns per year. A higher ratio indicates better cash flow and efficient buying.
Inventory Turnover = COGS ÷ Average Inventory Value
Example: $600,000 COGS ÷ $200,000 inventory = 3 turns/year
- Use it for: spotting slow movers, improving purchasing, freeing up cash.
- Watchouts: seasonality and inaccurate COGS tracking.
KPI 2: Gross Profit Margin
Shows the percentage of revenue remaining after direct costs. Many jewelry retailers aim for 40–60%.
Gross Margin (%) = [(Revenue − COGS) ÷ Revenue] × 100
Example: $100,000 revenue – $60,000 COGS = 40% margin
- Use it for: pricing strategy, vendor negotiations, and financial health.
- Watchouts: shrinkage or heavy discounting can erode margins.
KPI 3: Average Transaction Value (ATV)
Indicates average spend per transaction and the effectiveness of upselling. Typical ranges for jewelry stores fall between $150 and $500.
ATV = Total Revenue ÷ Number of Transactions
Example: $10,000 sales ÷ 50 transactions = $200 ATV
- Use it for: targeting high-value customers and refining marketing.
- Watchouts: a few large purchases can skew results.
KPI 4: Customer Retention Rate
Shows the percentage of customers who return in a period. Rates above 50% are considered strong; top performers reach 70%.
Retention (%) = (Returning Customers ÷ Customers at Start) × 100
Example: 200 returning out of 400 base = 50% retention
- Use it for: loyalty programs, personalized service, and long-term stability.
- Watchouts: seasonal patterns or incomplete data can distort results.
KPI 5: Sales Per Square Foot
Measures revenue generated per square foot of selling space. Jewelry retailers often target $500–$1,000 annually.
Sales per Sq. Ft. = Total Sales ÷ Retail Square Footage
Example: $150,000 sales ÷ 200 sq. ft. = $750/sq. ft.
- Use it for: evaluating store layout and merchandising success.
- Watchouts: location traffic and omni-channel sales may affect comparisons.
Putting KPIs to Work
Tracking these five KPIs together provides store owners with a comprehensive view of financial performance, operational efficiency, and customer loyalty. Regular reviews enable easier refinement of pricing, adjustment of inventory, and strengthening of relationships with repeat customers.
Learn more in this article by FinModelsLab.