What is the formula for Sales per Square Foot?

The formula for Sales per Square Foot is best expressed as Total Net Sales divided by the Square Feet of Selling Space. This calculation provides a measurement of how effectively a retailer is utilizing its selling area to generate sales revenue.

Sales per Square Foot is a critical metric in retail because it allows businesses to assess performance relative to the physical space they occupy. It helps in comparing sales efficiency across different locations and can influence decisions regarding store layouts, inventory management, and even expansion strategies.

Using the term "Square Feet of Selling Space" specifically focuses on the area in which sales occur, excluding non-selling areas like storage or employee facilities, which makes it a precise way to gauge sales productivity in relation to available sales space.