Store Performance Matrix

The Store Performance Matrix is a strategic tool used to evaluate and compare the performance of different retail stores based on key metrics such as sales growth and profitability. It helps businesses identify high-performing stores and those that need improvement, facilitating better resource allocation and strategic planning.

At a very high level, the Store Performance Matrix is used in the context of business, marketing, retail.

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What is the Store Performance Matrix?

A visual explanation is shown in the image above. The Store Performance Matrix can be described as a matrix with the following quadrants:

  1. Stars: High Sales Growth, High Profitability: Example - A store with a 20% sales growth and 15% profitability.
  2. Question Marks: High Sales Growth, Low Profitability: Example - A store with a 25% sales growth but only 5% profitability.
  3. Cash Cows: Low Sales Growth, High Profitability: Example - A store with a 2% sales growth but 18% profitability.
  4. Dogs: Low Sales Growth, Low Profitability: Example - A store with a 1% sales growth and 3% profitability.

What is the purpose of the Store Performance Matrix?

The Store Performance Matrix is a 2x2 matrix used by retail businesses to assess the performance of their various store locations. The matrix typically evaluates stores based on two key metrics: sales growth and profitability. By plotting stores on this matrix, businesses can easily identify which stores are performing well and which ones require attention.

In the top-left quadrant (High Sales Growth, High Profitability), stores are considered 'Stars' as they are excelling in both metrics. These stores are often prioritized for further investment and expansion.

In the top-right quadrant (High Sales Growth, Low Profitability), stores are labeled as 'Question Marks'. These stores have potential due to their high sales growth but need strategies to improve profitability.

In the bottom-left quadrant (Low Sales Growth, High Profitability), stores are termed 'Cash Cows'. These stores are stable and profitable but may not be growing. They are often used to fund other parts of the business.

In the bottom-right quadrant (Low Sales Growth, Low Profitability), stores are considered 'Dogs'. These stores are underperforming in both metrics and may need to be restructured or closed.

By using the Store Performance Matrix, businesses can make data-driven decisions to optimize their store portfolio, allocate resources more effectively, and develop targeted strategies for improvement.


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What templates are related to Store Performance Matrix?

The following templates can also be categorized as business, marketing, retail and are therefore related to Store Performance Matrix: Product-Market Matrix, 4 Ps Marketing Mix Matrix, AI Capability-Value Proposition Alignment Matrix, AI Innovation-Value Alignment Matrix, AI Maturity Matrix, AI-Value Proposition Alignment Matrix, AI-Value Proposition Matrix, AIDA Marketing Matrix. You can browse them using the menu above.

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