Shopping basket margin
Shopping basket margin is a term used in retail to describe the difference between the total value of goods in a customer’s shopping basket and the actual cost of those goods to the retailer. This margin is an important metric for retailers as it can help them determine the profitability of their sales and make decisions about pricing and inventory management.
For example, if a customer’s shopping basket contains $100 worth of goods and the retailer paid $70 for those goods, then the shopping basket margin would be $30. This margin is crucial for retailers to cover their operating expenses and generate profit.
Retailers can increase their shopping basket margin by implementing strategies such as cross-selling, upselling, and bundling products together. By encouraging customers to add more items to their shopping basket, retailers can increase the total value of each transaction and improve their margins.
It is important for retailers to carefully monitor their shopping basket margins and make adjustments as needed to ensure profitability. By understanding this metric and implementing effective strategies, retailers can optimize their sales and maximize their profits.
Wikipedia link: https://en.wikipedia.org/wiki/Gross_margin