Visual Merchandising Serivces
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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