With the entering of 2021, it’s time to look back on December key metrics and analyze what needs to be done for the year to come.
Although not much has changed besides the inability to write dates down, a new year is always a good excuse to start new.
WHAT’S IN THIS WEEKS EDITION, YOU ASK?
- December key metrics: One last look back.
- Updated Retail Traffic Trends: new and updated formula.
- The regulars: Everything you’ve come to expect from Retail Traffic Trends.
And, here’s what’s in next week’s edition: 2020 wrapped
For the very last time we will. be taking a deep dive into the key metrics of retail of 2020.
FOOT TRAFFIC INDEX
We figured there was no better time than now to improve our daily count formula. We realized that not every company has the time to exclude every salesperson or Fedex guy that walks through the store, which results in an average count that is higher than normal.
With that in mind, we’ve improved our formula to better capture the average counts for each day.
DC FEATURE OF THE WEEK
FOOT TRAFFIC TRENDS
This week we are taking a deep dive into how this December compared to last year in both the furniture and mattress industry.
December key metrics (furniture)
It’s hard to put to words how much has changed since December of last year. Despite the lockdowns and COVID protocols placed on the retail industry, the furniture industry was able to end the year without any major drops.
Conversion rate down 10%: This December had a completely different vibe than last year. With that being said, seeing only a 9.69 percent decrease in sales conversion actually sounds pretty good.
Average Ticket up 7%: Going out less has resulted in people spending more money on each visit they make. Rather than making multiple trips, customers are making the most out of every shopping trip they make.
Daily Revenue down 7%: Although people are spending more on each visit they make, a decrease in foot traffic has resulted in a 7.32% decrease in daily revenue from December 2019.
Daily Opportunities down 1%: Can we get a round of applause for the furniture industry? Despite numerous restricts on the retail industry, the furniture industry was able to skate by with only a 1.05% decrease in foot traffic.
New Prospects up 6%: New prospects are also known as people who leave the store without buying. To our surprise, nearly 6% more people left furniture stores without buying compared to December 2019.
December key metrics (mattress)
Unfortunately for the mattress industry, there isn’t a ton of green to go around — and by green, we mean positive change. Fortunately for us all, we can now leave 2020 in the past.
Conversion rate up 5%: If we had to choose one metric to be positive, we’d probably choose conversion rate. Compared to last December when the thought of a lockdown was preposterous, a 4.73% increase in conversion rate is quite impressive.
Average Ticket down 9%: Although the furniture industry saw a 7.49% increase in average ticket, it appears that add-on items were not as popular this year for the mattress industry. Overall, the mattress industry saw a 9.49% decrease in average ticket compared to last December.
Daily Revenue down 16%: While daily revenue in December of 2019 for the furniture industry was $2,186, December of 2020 saw a 15.76% decrease in revenue down to $1,842.
Daily Opportunities down 1%: Once again, we are blown away by the power of retailers. Given that last December was a completely normal, non-pandemic month, it’s amazing to see only a 1.23% decrease in foot traffic.
New Prospects down 35%: As we’ve stated before, new prospects is a fancy way to say people who walk out of the store without buying. Although there is a 35.09% decrease in new prospects, we view this as a major positive because it means more people are leaving the store with an item in hand.
How much money are you losing because of traffic blindness?
Here’s a “mockumentary” style video on traffic blindness and how YOU can recognize the early signs of this silent killer of sales. Watch, enjoy a good laugh, and learn what you can do to cure your traffic blindness and convert your foot traffic into more sales.