This thesis investigates how Swedish retail Small and Medium Enterprises select and implement Key Performance Indicators (KPIs) and how they balance financial and nonfinancial KPIs to manage short-term and long-term performance. In an increasingly competitive retail industry, SMEs face pressure to improve performance while navigating limited resources and rapid market changes. Kaplan and Norton's Balanced Scorecard (BSC) is applied as a theoretical framework to examine to what extent financial and non-financial KPIs are integrated into the strategic planning process across seven Swedish retail SMEs. Using a qualitative, multiple-case study design and semi-structured interviews with key decision-makers at the participating firms, the findings reveal significant variation in KPI practices and maturity levels. While all firms demonstrate a strong alignment with the financial metrics, non-financial KPIs are less systematically implemented but present an increasing awareness of their importance. The study emphasizes a general trend toward more balanced and structured performance management among more mature firms, although challenges remain in formalizing strategic alignment. The study provides insights into understanding the practices of SME performance management and offers practical guidance for fostering sustainable growth in the retail sector among SMEs.