Sales per square foot

Definition

Sales per square foot is the store's average revenue for every foot of sales space.

Why is it useful?

Sales per square foot determines how efficient the store space is being used. This is particularly important after a change in the store layout. It can also be used to conduct multi-location analysis and to determine whether rent paid at various stores are worthy. It is only reasonable to pay a higher rent for a location, if the store there has higher sales per square foot than other stores.

Example of Use

Larger retail stores can separate the whole store into different sections and use this metric to analyze the sales efficiency of each section.

Want to calculate this automatically for your business?

Give Konigle a try. It can calculate these metrics and give you reports on how your business is performing. It's mobile-first, and simple to get started, and super easy to use.
Sign up for Konigle