Sales per square foot,
Definition of Sales per square foot:
The dollar value of sales per square foot has, for many years, been a measure of success in the brick-and-mortar retailing industry. It is simply the average revenue earned for every square foot of sales space.
Measurement used to value the spaces value, whether it is office or retail. Sales per square foot is an important element in deciding rent fees for retail shops, planning inventory purchases, and measuring returns on investment for both the leasor and lease. The data is derived by dividing the total net sales by the square feet of the selling space.
In the age of "omnichannel" marketing, this number may be less relevant, at least for large retail companies. However, it still can be a critical measure of success to an independent local business.
How to use Sales per square foot in a sentence?
- The measure is becoming less relevant in today's omnichannel marketing environment.
- Managers and analysts consider a higher number to be proof of greater efficiency.
- Sales per square foot is a key measure of success in brick-and-mortar retailing.
Meaning of Sales per square foot & Sales per square foot Definition