Gross Margin Return on Investment, (GMROI) is one of the most popular KPIs used in modern retail.
It is so well-liked that its promoters claim that it is the best KPI for retail and that by using it a shop profit can be increased dramatically.
What it measures is for every dollar invested by the retailer, what did the retailer get back for each stock item so they can determine which items are really profitable, which are average, which are poor and what is dead stock.
Here is a training video which shows you how to do the calculations.
Enjoy
