Overview

Parity provides a means for assessing the performance of a store against what is deemed to be an average weekly sales level. It can provide a more meaningful measure of store sales performance where overall performance for the chain varies significantly from target.   

Calculation

Firstly a parity value is assigned to each store as show in the table below. It is an estimate by the business of the typical sales of this store in a typical week. Therefore it represents an assessment of the stores value to the business compaired with all other stores in the chain. The parity value is then convered to a parity percentage. 

 

Store	Parity $	Parity %
Store A	15,000	19.74%
Store B	20,000	26.32%
Store C	22,000	28.94%
Store D	19,000	25.00%
Total	76,000	100.00%

 

Then the stores actual sales can be compared against its parity as shown in the following table.

Store	Actual Sales	Parity %	Parity Sales	Actual % Total	Parity Points
Store A	12,750	19.74%	13,136	19.16%	-0.58
Store B	15,820	26.32%	17,515	23.77%	-2.55
Store C	19,210	28.94%	19,258	28.87%	-0.07
Store D	18,766	25.00%	16,637	28.20%	3.20
Total	66,546	100.00%	66,546	100.00%	0.00

 

The Actual Sales column contains the actual store sales for the period. The Parity % is copied through from the first table and multiplied by total Actual Sales to calculate Parity Sales for each store. Parity Sales can then be compared to Actual Sales to provide one performance measure for the store. The Actual % Total column contains the stores Actual Sales as a percentage of total Actual Sales. Finally Actual % Total - Parity % = Parity Points. Parity Points provides another visual measure of the performance of a store. 

Parity Groups

Each store must be assigned to a parity group. The parity calculation is then performed for each parity group independantly. In the example above, Stores A to D must all belong to the same parity group.

Configure Parity Settings in the Information Store

To configured parity settings within the Information Store to support parity reporting: -

1. Use Maintain Names to define parity groups. Parity Groups are defined against the Parity Group name type.  
2. User Maintain Store Performance Attributes to assign a Parity Group to each store.

 

See Also