Which of the following describes key performance indicators (KPIs) in retail?

Key performance indicators (KPIs) in retail are essential tools that provide measurable values that can help organizations evaluate their success in achieving specific objectives. The correct choice reflects that these metrics are used to measure financial performance and operational efficiency.

In the retail space, financial performance can include metrics such as revenue growth, profit margins, and inventory turnover, all of which help assess how well the business is doing financially. Operational efficiency can be measured through metrics like sales per square foot or the cost of goods sold, which provide insight into how efficiently resources are utilized within the business.

While tracking employee satisfaction, measuring sales trends, or focusing on customer service quality can each be considered important to overall business health and strategy, they do not directly encompass the broad and critical scope of KPIs pertaining to financial and operational efficiency that drive retail performance.