Measuring Marketing

Chapter 85 Sales Per Square Foot

Measurement Need

Retail space is an expensive solution, whether owned or leased, so retailers need to maximize the sales per square foot (SPSF) of the main customer selling space.

Solution i

SPSF measures how productive a retailer is with the use of retail space for merchandising products that generate revenue. It is important to note that the selling area refers to the actual selling space, as opposed to window displays (to which consumers have no access), dressing rooms (where no merchandise is displayed for sale), and similar nonselling floor space. Also, vacant space costs money (much like an empty airline seat costs money), so the productive use of existing space is critical to successful sales:

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