Retail World

Profitability per m²: how to improve the productivity of your store?


Sales per m² are among the most useful indicators to analyze the real performance of your stores: this analysis can provide you with useful information on their efficiency and on how to improve their effectiveness, for example by improving the layout, renewing the offer, adequately training the staff, etc.

What are sales per m²?

Sales per m² represent the average money consumer spending per m² of sales area. The formula for calculating it is simple: it is necessary to divide the total sales in the store by the m² of the sales area.

Basically, if a store sells goods for 1 million dollars in an area of ​​1,800 m², the average profitability of the store per m² corresponds to the turnover divided by the square meters of the store:

This result indicates the store’s ability to develop profitability in relation to the exhibition space: to understand it, it could suggest you how to improve, for example, the layout of the store that yields less, inspired by the one that works better.

In addition to furnishings, even the most profitable shop windows (those that attract the most potential customers in store) can be replicated, the customers’ paths perfected, the offer optimized and prices improved.

Making retail in the right way means having the ability to know how to analyze every inch of the shelf and keep track of every little space so that it can produce more income.

There are analytical technologies, methods and strategies that can help you keep these KPIs under control and increase the value of transactions. Among the most common, for example, we find cross-selling: it consists of selling items to “complete” the product that the customer is buying. If a customer is buying a wallet, then you could ask him for the same purse to match it.

Last but not least, the analysis and data collection’s tools (primarily software & hardware) must be present in every respectable retail company and, above all, must be continuously monitored.

TC Group Solutions offers its customers the best solutions to monitor pedestrian traffic sales in physical stores.

What are you waiting for? Request a DEMO

Leave a Reply

Your email address will not be published. Required fields are marked *