Tracking Sales Per Square Foot


The standard of any business, especially a retail business is the tracking of sales per square foot. This is also the easiest retail math formula to do and use.

Most business use $300 sales per square foot as a bottom line benchmarking figure. You probably already know your bottom line, you need to generate  x amount of sales to pay your bills, rent and staff.

Why Tracking is Good
  • Calculates your ROI (Return on Investment)
  • Helps to make purchase decisions
  • Helps to create a goal is to generate more business from existing areas
  • Assists in managing business and profitability
  • Good number to share with employees so they understand overall retail planning and finances.

Sales Per Square Foot Formula

  • Total Net Sales ÷ Square Feet of Selling Space = Sales per Square Foot of Selling Space


  • Total Net Sales= $20,000 per month
  • ÷ 1000 sq. Ft
  • = $20 sales per square foot.


  • The key- strive on a monthly and yearly basis to use sales per square foot as a goal and a basis for growth. Involving staff, having 1 person in charge to report the stats at a monthly staff meeting, gets the whole team involved in the office profitability.
Tactics to Increase Sales Per Square Foot:
  • Put a Sale Rack in the back of the store- to get consumers to walk thru the whole store.
  • Set aside up to 5% of an area/stock dedicated to ongoing ‘test’ markets. Sales are then monitored and evaluated as to results.
  • Empower employees to each create a ‘Eye Profit Zone’ – let each be responsible for a ‘Eye-Zone’ profit. As an example- Staff ‘A’ is responsible for Accessories, Staff B is responsible for Contact Lens, Staff B responsible for tracking and sell through of Sunglasses.
  • Use Groupon or FourSquare to move slower moving products.
  • Post Sale items or specials on Facebook or Twitter
  • Try  ‘Product of the Month’ to move slower moving items.
  • Have special events, trunk shows, speakers to bring in more consumers.

Top Performing Retail Stores

  • Apple- $4,000 per square foot per year
  • Costco Wholesale- $976 per square foot per year (2008)
  • Forum Shops at Caesars $1300 per square foot per year
  • Walmart’s sales per square foot is about $422.00
VEW Mid-Page 19


Comments are closed.