BROWSE

Sales Per Square Foot

Definition

In retail, sales per unit area is a standard and usually the primary measurement of store success. The unit of area is usually square metres in the metric system or square feet in U.S. customary units. Square feet are also widely used in retailing in the United Kingdom, but there are signs of a trend towards use of square meters.

What is 'Sales Per Square Foot'

Sales per square foot is a popular sales metric used in the retailing industry. Sales per square foot is simply the average revenue a retail business creates for every square foot of sales space.

Explaining 'Sales Per Square Foot'

Sales per square foot is used by businesses and analysts alike to measure the efficiency of a store's management in creating revenues with the amount of sales space available to them. The higher the sales per square foot, the better job mangement is doing of marketing and displaying the store's products.


Further Reading


The effect of non-spatial attributes on shopping center sales performance.
elibrary.ru [PDF]
… Shopping center sales performance is measured in terms of non-anchor retail sales per square foot … The analysis indicates that anchor retail fashion image and non-anchor retail mix significantly affect non-anchor retail sales per square foot …

A simulation analysis of the relationship between retail sales and shopping center rentsA simulation analysis of the relationship between retail sales and shopping center rents
aresjournals.org [PDF]
… Shopping center sales performance is measured in terms of non-anchor retail sales per square foot … The analysis indicates that anchor retail fashion image and non-anchor retail mix significantly affect non-anchor retail sales per square foot …

Internalizing externalities: the pricing of space in shopping mallsInternalizing externalities: the pricing of space in shopping malls
www.journals.uchicago.edu [PDF]
… Shopping center sales performance is measured in terms of non-anchor retail sales per square foot … The analysis indicates that anchor retail fashion image and non-anchor retail mix significantly affect non-anchor retail sales per square foot …

Changing economic perspectives on the theory of retail locationChanging economic perspectives on the theory of retail location
link.springer.com [PDF]
… Shopping center sales performance is measured in terms of non-anchor retail sales per square foot … The analysis indicates that anchor retail fashion image and non-anchor retail mix significantly affect non-anchor retail sales per square foot …

Using financial analysis to assess brand equityUsing financial analysis to assess brand equity
www.emerald.com [PDF]
… Shopping center sales performance is measured in terms of non-anchor retail sales per square foot … The analysis indicates that anchor retail fashion image and non-anchor retail mix significantly affect non-anchor retail sales per square foot …

An economic analysis of a drug-selling gang's financesAn economic analysis of a drug-selling gang's finances
academic.oup.com [PDF]
… Shopping center sales performance is measured in terms of non-anchor retail sales per square foot … The analysis indicates that anchor retail fashion image and non-anchor retail mix significantly affect non-anchor retail sales per square foot …

The impact of tax increment finance districts on localized real estate: Evidence from Chicago's multifamily marketsThe impact of tax increment finance districts on localized real estate: Evidence from Chicago's multifamily markets
www.sciencedirect.com [PDF]
… Shopping center sales performance is measured in terms of non-anchor retail sales per square foot … The analysis indicates that anchor retail fashion image and non-anchor retail mix significantly affect non-anchor retail sales per square foot …



Q&A About Sales Per Square Foot


What is sales per square foot?

Sales per square foot is the average revenue a retail business creates for every square foot of sales space.

Is there anything else that can be learned from this metric?

Yes, you can learn if a company has enough room to expand or not based on how much money they are making off each square feet they have available for display. If they are making good money off each one then there should be no problem expanding into other areas as long as those areas are profitable too. If not then maybe some changes need to be made before expansion takes place so that profits will increase along with expansion into new areas.

Why do businesses and analysts use this metric?

Businesses and analysts use this metric to measure efficiency of a store's management in creating revenues with the amount of sales space available to them. The higher the sales per square foot, the better job mangement is doing marketing and displaying the store's products.

What does it show about how well management displays their products?

This shows how well management displays their products in order to create more revenue for each square feet they have available for display.

How is it calculated?

It is calculated by dividing total annual sales by the number of store's square footage.