Sales per Square Foot Metric
Measure how much sales revenue you are able to generate for each foot of retail space provided.
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Overview
The Sales per Square Foot KPI measures how much sales revenue you are able to generate for each foot of retail space provided. Use the following formula when calculating the sales per square foot KPI:
Total Net Sales ÷ Total Floor Area
This a popular retail sales KPI because it clearly demonstrates how effective your store layout and retail personnel are at selling product. As such, this KPI is important when redesigning or modernizing retail outlets, and will be the ultimate indicator of whether that redesign was successful or not. Many of the largest retailers will use a similar design concept for all of their stores, and will go to great lengths to ensure uniformity in each location. Therefore, the sales per square foot KPI can also be used to identify when cultural differences are impacting sales and warrant further investigation.
Key terms
- Sales revenue: Income received through sales activities.
Success indicators
- A high and/or increasing sales per square foot for one or more locations.
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