Metrics question

You are the PM for a superstore chain. One store has been loosing profit YOY. What metrics would you request to help you investigate?

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What this question tests

Tests structured diagnostic thinking, requesting the right data to separate revenue, cost and mix problems before proposing a fix.

How to approach it

  1. Split profit into its drivers: revenue, foot traffic and basket size, versus cost, labor, shrinkage and rent, since either side could be the cause.
  2. Request revenue-side data: YOY foot traffic, average transaction value, and category-level sales mix versus other stores in the chain.
  3. Request cost-side data: labor cost as a percent of sales, shrinkage or theft rate, and any recent rent or lease changes.
  4. Request external context: a new competitor opening nearby, local demographic shifts, or a road or construction change affecting access.
  5. Compare this store against similar stores in the chain to isolate whether the cause is store-specific or a broader chain-wide trend.

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