Sales density is a measure of performance in retailing. It is the revenue generated for a given area of sales space, and is presented as a monetary value per square metre. The higher the figure, the more efficiently the floorspace is being used.[1]
It is often quoted alongside other indicators such as like for like sales.[2]
Sales density is a ratio computed dividing the total retail sales over a year by the total surface of all the stores owned by the retailer (potential wholesale/franchising sales are usually not included). It is disputed whether the online sales of the retailer should be included in the numerator of the ratio given the high interdependence in the marketing strategy of online sales and own stores sales.
See also edit
References edit
- ^ Planning Dept Archived 2011-06-13 at the Wayback Machine, Elmbridge Borough Council
- ^ How do retailers' trading performance measures stack up? Archived 2019-12-16 at the Wayback Machine, Deloitte, March 2009