The KPI Race: Setting the Pace for Incremental Improvements
Last holiday, 36% of stores went into peak season without KPI targets in place. Among those that did, results were mixed: 41% fell below their conversion thresholds, 47% landed within, and only 12% surpassed them.
The takeaway is clear: when targets are misaligned, performance suffers.
In retail, numbers set the pace. Sales, margins, and labor targets flow from the top down, shaping expectations for every level of the business. Executives define strategy, finance locks in goals, and operations translate those into KPIs like conversion, average transaction value (ATV), and units per transaction (UPT).
But the real race begins when those targets reach the sales floor.
The challenge isn’t setting goals—it’s setting the right ones. The difference between growth and stagnation often comes down to whether your targets inspire confidence or create complacency.
When the math doesn’t match the moment
Retailers know that “the math has to math.” Yet, goals that look reasonable in a planning spreadsheet can play out very differently in the store.
All-green dashboards may feel like a win, but associates risk slipping into autopilot. If effort doesn’t change the outcome, why push harder?
One-size-fits-all targets may set up some stores to succeed easily while leaving others stuck chasing the impossible. Either way, motivation erodes.
Unrealistic incentives tied to rigid dashboards can push teams away from the sales floor and into back rooms in search of achievable wins.
These scenarios don’t just impact internal morale—they directly influence customer experiences. When an associate meets a shopper at the lease line, their approach is shaped by the behaviors that targets encourage.
Progress comes from the right place
As Angel White, Client Success Manager at StoreForce, reminded retailers at Community Conference 2025, goals are more than numbers. They’re signals that shape how teams engage with customers and build confidence.
The most effective targets aren’t massive leaps. They’re incremental improvements broken down into small, achievable gains that compound into lasting results.
Think of it like training for a race. No one runs a half marathon by jumping from one mile to thirteen overnight. You build strength gradually, track your pace, and measure progress at every milestone. The same holds true for stores. When goals are calibrated correctly, they provide the markers that keep teams motivated mile after mile.
Dashboards that drive behavior
Dashboards are the daily checkpoints for store performance. They track progress, celebrate wins, and spotlight areas for improvement. But their impact depends on how they’re designed.
Static targets risk making performance feel fixed, either too easy or out of reach.
Uncalibrated targets mask true performance, making it difficult to see where coaching is needed.
Trend-based, role-appropriate targets give each store a fair shot at progress, accounting for unique market conditions, traffic patterns, and team dynamics.
It’s no surprise that 60% of retailers are now moving toward alternate, role-based dashboards. Associates, managers, and executives need different views to take effective action. When dashboards reflect meaningful goals, they spark engagement. Teams see where to focus, understand how actions connect to results, and feel momentum building over time.
Coaching for performance
The process can be compared the process to coaching a championship relay team. Just as sprinters have unique strengths—one explosive off the blocks, another steady on the curve—stores have their own characteristics. Applying the same goal across every store is like putting athletes in the wrong positions and still expecting a gold medal.
Great coaches set their teams up to win by recognizing strengths, calibrating expectations, and designing strategies for steady improvement. Retail leaders must do the same with KPIs.
Why it matters now
The stakes are highest during peak season. On average basket targets last holiday, 42% of stores were above, 45% within, and 13% below. Dashboards that aren’t calibrated send mixed signals, making it harder to spot true performance or coach effectively.
Dashboards that aren’t calibrated send mixed signals, making it harder to spot true performance or coach effectively. With just 11 weeks between the start of peak planning and Black Friday—and 2025 bringing tighter labor budgets and softer discretionary spending—there’s little room for misalignment. Leaders need to gut check whether their KPI targets are realistic, motivating, and designed to elevate customer experiences.
Setting the pace for better results
Retail success isn’t about chasing perfection. As Sam Walton, the founder of Walmart, famously said, “The goal isn’t to be the best. It’s to be better than you were yesterday.”
For executives, that means shifting the focus from static benchmarks to incremental gains. It means designing dashboards that help store teams see their progress, believe in their ability to improve, and understand exactly how to get there.
The right targets set the pace. They keep associates engaged, guided coaching conversations, and build momentum toward lasting growth.
So, the question isn’t whether your stores have goals. It’s whether those goals are helping or hindering their race toward better results.
Did You Know?
Many retailers are evolving the way they manage KPI targets. Here are three approaches worth considering:
Trend-Based Targets: Rather than setting static goals, trend-based targets use a store’s own performance history to calibrate expectations. This makes progress both achievable and motivating.
Calculated Targets: The math should always “math.” Calculated targets balance ambition with achievability, ensuring goals drive performance without discouraging teams.
Alternate Dashboards: Different roles need different views. Role-specific dashboards highlight the KPIs that matter most, giving associates, managers, and executives the clarity they need to take action.
When done right, these strategies don’t just create better dashboards—they build stronger engagement on the sales floor and momentum for long-term growth.