Location KPI
Location KPIs are key performance indicators that measure the health and productivity of physical business locations. Spanning metrics like revenue per square foot, foot traffic conversion, and trade area penetration, they provide a standardized framework for benchmarking and optimizing store networks.
Location KPIs are quantitative metrics used to evaluate and compare the performance of physical business locations—stores, restaurants, branches, clinics—against each other and against strategic targets. They translate raw operational and spatial data into actionable indicators that drive decisions about staffing, marketing, investment, and network optimization.
Core Metrics
Common location KPIs include revenue per square foot, sales per capita (revenue divided by trade area population), foot traffic volume and conversion rate (share of visitors who transact), average transaction value, dwell timeDwell TimeDwell time measures the duration a visitor spends at a specific location, such as a store, mall, or point of interest..., visit frequencyVisit FrequencyVisit frequency measures how often a consumer visits a specific location within a defined time period. Derived from m..., market penetrationMarket PenetrationMarket penetration measures the extent to which a brand, product, or store captures the available demand within a def... (share of trade area population captured as customers), and year-over-year traffic trends. Advanced KPIs incorporate spatial context: distance-decay revenue curves, share of wallet versus competitors, and incremental sales (revenue attributable to the specific location versus transfers from other network stores).
Applications
Retail operations teams use location KPIs to identify underperforming stores for intervention—targeted marketing, staffing adjustments, or format refreshes. Real estate teams compare KPI benchmarks when evaluating lease renewals versus relocation. Franchise systems set territory-specific KPI targets that account for local market conditions. Portfolio investors assess asset performance and value appreciation potential through location KPI trends over time. Location KPIs provide the measurement language that connects spatial analytics to business outcomes, ensuring that every location in a network is evaluated with consistent, data-driven rigor.
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