Sales per square foot measures sales generated for each square foot of a defined store area over a stated period.
How it works in retail
Divide the selected sales measure by the relevant floor area. Retailers may use selling area or total occupied area, which produce different results.
A retail example
A shop with $900,000 in annual net sales and 1,500 square feet of selling space generates $600 per selling square foot.
What to keep in mind
State whether stockrooms, concessions and online-attributed sales are included. The metric measures sales productivity, not profit or the full value of a location.
Examples are illustrative. Terminology and measurement conventions can vary by business and market.