Strong category management starts with understanding your data. Every decision, from space allocation to promotional planning, should be guided by what your sales, margin, and stock figures reveal.
This Category Performance Tracking Guide helps pharmacies use simple, evidence-based metrics to evaluate how each category is performing. By reviewing category data regularly, you can identify growth opportunities, manage underperforming ranges, and make informed adjustments that increase both sales and profitability.
Why Track Category Performance
Tracking category performance enables you to manage your pharmacy like a retail business. Understanding what drives your top-line sales and bottom-line margin ensures every metre of space and every euro of stock is working hard for you.
Benefits include:
- Improved profitability: Focus on the most commercially valuable categories.
- Better space efficiency: Allocate shelf space according to real performance.
- Reduced stock waste: Identify overstocked or slow-moving items early.
- Smarter promotional focus: Invest in categories with proven customer demand.
- Data-led decision-making: Replace guesswork with evidence.
The Key Metrics to Monitor
A few simple indicators can transform how you view your pharmacy’s front-of-shop performance.
Metric |
Definition |
What It Tells You |
Sales Value (€) |
Total revenue per category over a defined period |
Indicates overall category size and sales contribution |
Sales Volume (Units) |
Number of products sold |
Reveals customer demand and stock movement |
Gross Margin (%) |
Profit earned on sales after product cost |
Highlights which categories drive profitability |
Stock Turn |
Number of times stock sells through during a period |
Measures stock efficiency and cash flow |
Rate of Sale (Units/Week) |
Average units sold per week |
Helps forecast demand and set reorder levels |
Sell-Through % |
% of total stock sold within a promo or period |
Indicates effectiveness of promotions or stock management |
💡 Together, these metrics give a full picture of both sales performance and retail efficiency.
How to Gather & Analyse Your Data
-
Run Category Reports:
Use your EPOS or till system to generate sales and margin reports by department or category. -
Check Data Accuracy:
Ensure categories are correctly coded and that price and margin data are up to date. -
Select Your Time Frame:
Review performance on a monthly, quarterly, and annual basis to spot short- and long-term trends. -
Compare Performance:
Look at both absolute performance (sales value) and relative performance (growth or decline vs. previous periods). -
Prioritise by Impact:
Focus on the top 10 categories by sales and margin contribution — these typically represent 70–80% of your retail income.
Turning Insights into Action
The goal is not just to review numbers but to act on them. Use the insights from your tracker to make targeted retail improvements.
Insight |
Action to Take |
Category has strong sales & margin growth |
Allocate more space or create feature display |
Category has strong sales but low margin |
Review pricing or supplier terms |
Category has high stock but low sell-through |
Reduce range or introduce promotion |
Category in long-term decline |
Reassess its importance or replace with higher-growth lines |
Category showing high stock turn & strong rate of sale |
Use as a model for layout or promotional focus |
Tracker Template
Purpose:
To help you monitor and act on category-level performance data using your own pharmacy’s figures.
Click on the image below to download excel template.
Columns Explained:
Sales Value & Volume: Understand category scale and demand.
Gross Margin: Identify high-profit areas.
Stock Turn & Rate of Sale: Assess efficiency of stock movement.
Sell-Through %: Measure success of promotions and replenishment.
Space Allocation: Compare space to contribution.
Recommended Action: Decide whether to expand, maintain, reduce, or review.
📊 It is recommended to complete this tracker quarterly to support your layout and promotional planning.
Interpreting the Results
Once your tracker is complete:
- Highlight growth opportunities: Which categories are driving sales and margin?
- Spot inefficiencies: Are some categories over-spaced relative to their performance?
- Plan next steps: Use your findings to adjust floor layout, promotion focus, or supplier discussions.
- Integrate with other tools: Cross-reference with your Macro Floor Planning Guide for a 360° view of retail optimisation.