What Gets Measured Gets Managed

By Alan Miklofsky | January 19, 2026

In the retail shoe business, instinct will get you started. Experience will keep you alive. But MEASUREMENT is what separates stores that merely survive from stores that quietly, consistently win.

The phrase “What gets measured gets managed” is often credited to Peter Drucker. Whether or not he coined it, shoe retailers live its truth every single day. You already measure something. Sales per day. Payroll. Inventory turns. The question isn’t whether you measure. It’s whether you’re measuring the right things, often enough, and acting on them before they bite you.

To make this practical, let’s turn MEASURE into a working framework. Each letter represents a critical KPI category that directly impacts footwear operations and sales.

M – Margin by Category, Brand, and SKU

Top-line sales are loud. Margin is quiet. Quiet things decide survival.

Too many shoe retailers celebrate sales growth while ignoring where the profit actually comes from. A higher-volume brand with thinner margins can crowd out a quieter, higher-margin performer and leave you working harder for less.

Key measurements to track:

· Gross margin by brand

· Gross margin by category (comfort, athletic, dress, accessories)

· Margin erosion from markdowns and promotions

If you don’t measure margin below the store level, you’re guessing. And guessing is expensive.

E – Efficiency per Labor Hour

Payroll is usually the second-largest expense in a shoe store. Sometimes the first. Yet it’s often managed emotionally instead of analytically.

Efficiency answers one blunt question: What do I get for every labor hour I buy?

Useful KPIs include:

· Sales per labor hour

· Transactions per labor hour

· Average units per transaction by associate

This isn’t about squeezing staff. It’s about scheduling smarter, training better, and aligning coverage with traffic patterns. Efficiency metrics protect both profitability and sanity.

A – Average Transaction Value and Units per Sale

Footwear margins rarely improve through price increases alone. They improve through better baskets.

If your average transaction hasn’t moved in years, you’re leaving money on the fitting stool.

Track:

· Average dollar sale

· Units per transaction

· Attach rate for socks, insoles, care products, and accessories

These numbers expose whether your sales floor is truly selling or simply ringing. When measured consistently, they drive coaching conversations that actually matter.

S – Sell-Through and Inventory Turns

Inventory is cash wearing shoes.

Sell-through tells you how effectively product converts to revenue within a defined period. Turns tell you how often your inventory reinvests itself.

Important KPIs include:

· Sell-through at 30, 60, and 90 days

· Inventory turns by category and brand

· Aging inventory percentage

When these numbers drift, the problem is rarely buying alone. It’s usually timing, allocation, depth, or missed markdown discipline. Measurement makes the problem visible early enough to fix it.

U – Utilization of Space and Fixtures

Square footage is expensive. Fixtures are not decorations. Every foot of wall and every table earns or it doesn’t.

Most shoe retailers never formally measure space productivity, even though real estate costs are relentless.

Metrics worth tracking:

· Sales per square foot by zone

· Sales per fixture or wall section

· Category productivity relative to space allocation

When space utilization is measured, poor performers lose territory and winners earn expansion. Without measurement, layouts fossilize and underperform quietly.

R – Repeat Customers and Retention

New customers feel exciting. Repeat customers pay the bills.

If you don’t measure retention, you won’t know whether your service model actually works beyond the first sale.

Key indicators:

· Percentage of sales from repeat customers

· Frequency of visits per customer

· Loyalty enrollment and active participation

This is where POS data, CRM tools, and even simple tracking systems matter. Retention metrics turn great service from a feeling into a fact.

Final Thought

Metrics don’t manage the business. People do. Measurement simply gives them the flashlight.

A KPI that’s tracked but never discussed is useless. A report that arrives after the month ends is history, not management. The goal is regular review, clear ownership, and visible consequences—good or bad.

When you measure the right things, you don’t lose your soul. You protect it.

Because in the end, what gets measured truly does get managed—and what doesn’t gets ignored until it’s too late.