Return on Investment (ROI) in Retail

Return on Investment (ROI) in retail measures how effectively a store or business earns profit from the money it invests. It compares the profit generated to the amount spent on investments like inventory, marketing, or store development. A higher ROI indicates better efficiency in turning investments into earnings, helping retailers evaluate whether their spending is worthwhile. For example, if a store spends $10,000 on a marketing campaign and earns $15,000 in additional sales, the ROI shows the profit made relative to that investment. It’s a key metric for making informed decisions and improving profitability.