Overview

Retail Arena provides comprehensive individual and store performance management functionality. 'Real time' performance feedback can be deliver to stores and head office through the Communications Portal, ensuring each store and its sales people are aware of their performance against targets. It's purpose is to enable retailers to realise the potential of their sales force.

Remarks

Multiple measure can be adopted depending the performance management methodology adopted by the retailer.

Measure	Description
Sales versus Target	Store daily sales and margin targets can be generated or imported into Retail Arena. Sales targets can be allocated to individual sales people based on their share of total selling hours within the store. For example if a total of 20 'selling hours' were worked in a store, and an individual employee worked for 5 of those ours the employee is allocated 25% of the store sales target.
Average Transaction Value	The average sale value against each transaction.
Average Unit Price	The average price of each unit sold.
Items per Transaction	The average number of items that is sold against each transaction. This is often represented as a decimal number such as 1.65, indicating that on average an employee sells 1.65 item in each sale.
Accessory Ratio	The number of accessories that is sold in each transaction. This is often represented as a decimal number such as 0.35, indicating that on average an employee sells 0.35 accessories in each sale. Product can be identified as accessory items within Retail Arena to support this measure.
Sales per Hour	Often called productivity, this is calculated as Sales / Selling Hours. The Selling hours can be imported from an external roster solution or from the Retail Arena Roster Timesheet application.

Other issues can affect a performance management strategy.

1. Sales Returns: A customer may purchase a product on line or from a store, and return the product for either a refund or as an exchange in another store. This can adversly affect the individual or store performance statistcis of the returning store even though they did not get the benefit from the individual sale. If the Point of Sale supports recording the original sale docket number against a return or exchange, Retail Arena reporting can allocate a return to the original selling store or employee. 
2. Selling and Non Selling Hours: While an employee may be work in a store for say 8 hours, it is possible that they may spend 2 of those hours in non selling tasks such as administration or stock work. This can detriment performance measures that incorporate selling hours such as Sales versus Target to Sales per Hour. The Retail Arena Roster Timesheet solution supports distingusing selling and non selling hours, and only selling hourse are taken into account in performance management.
3. Bonus Structures: The outcomes from a performance management strategy are often aided by algining bonus payments with achievements of sales goals.

Typically Retail Arena is configured to meet the exact requirements of each retailer.

Store and Employee Target Generation

Typically store and workforce performance targets are generated throught the following sequential steps: -

1. Daily store sales targets are created. See Maintain Targets for various methods for generating store sales targets.
2. Store performance targets are generated. Typically these include wage targets and performance targets such as sales per hour. See Generate Staff Performance Targets for more information.
3. During the week, timesheet data is entered for each employee.
4. Targets are calculated for individual employees based on their timesheet hours and the store targets.

This section describes how the various employee targets at point 4 above are calculated.

Target Value	Default Calculation
Employee Sales Target	The store daily sales target is allocated to each employee who works in a store on that day based on their proportion of selling hours in the store. Consider an example where three employees work in a store on a given day and spend a total of 20 hours on the floor selling. If one employee spends 5 hours on the floor selling, they will be allocated 5/20 or 25% of the stores daily sales target.
Employee Productivity Target	This is calculated as Employee Sales Target / Employee Selling Hours.

While these are the default calculations, these calculation may be varied for specific reports. See for example the Employee Productivity Audit Report.