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Visual Merchandising Serivces

Retail Performance and Productivity Formulas

A few helpful formulas to measure how your retail unit is currently performing. There are three options:

  • Measuring Performance of Selling Space
  • Measuring Performance of Inventory
  • Measuring Productivity of Staff

Measuring Performance of Selling Space

Sales per square foot

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

Sales per Linear Foot of Shelf Space

Total Net Sales ÷ Linear Feet of Shelving = Sales per Linear Foot

Measuring Performance of Inventory

Sales by Department or Product Category

Category's Total Net Sales ÷ Store's Total Net Sales = Category's % of Total Store Sales

Inventory Turnover

Sales (at retail value) ÷ Average Inventory Value (at retail value)

Gross Margin Return on Investment

Gross Margin (AED) ÷ Average Inventory (at cost) 

Measuring Productivity of Staff

Items per Transaction

Gross Sales ÷ Number of Transactions = Sales per Transaction

Sales per Employee

Net Sales ÷ Number of Employees = Sales per Employee