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Retail transactions are the basic activities through which customers purchase goods or services from a retailer. The performance of a retail store depends not only on attracting customers but also on converting visits into purchases, increasing the value of each purchase, and encouraging customers to return. The factors that influence these activities are commonly referred to as transaction drivers. In Store Operations-I, transaction drivers are important because they help retailers understand why sales increase or decrease and enable them to improve store performance through effective operational decisions. One of the most important transaction drivers is customer traffic. Customer traffic refers to the number of people who enter or visit a retail store during a particular period. Higher customer traffic creates greater opportunities for sales transactions. Store location, accessibility, visibility, nearby competitors, advertising, promotional activities, festivals, and local events can influence customer traffic. Retailers monitor the number of visitors entering the store through manual counting or electronic footfall counters. However, high traffic alone does not guarantee high sales because visitors may leave without making a purchase. Therefore, traffic has to be considered along with other transaction drivers. The second major driver is conversion rate. Conversion rate indicates the proportion of store visitors who actually make a purchase. It can be calculated by dividing the number of transactions by the number of visitors and multiplying the result by 100. For example, if 1,000 customers visit a store and 250 make purchases, the conversion rate is 25 percent. A higher conversion rate indicates that the store is more successful in converting visitors into buyers. Product availability, employee behaviour, product presentation, __________ _______ _______ ________ ________ ________ ___ ____.
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