Sales per Square Foot
Revenue generated per square foot of retail floor space, measuring store productivity
What is Sales per Square Foot?
Sales per square foot is the store revenue earned for each square foot of retail floor space. It shows how productively a store uses its space.
Space is expensive, so this measure helps judge layouts, ranges and store performance.
How this KPI is measured
- Function
- Sales
- Sub-function
- Store Productivity
- Industry
- Retail
- Type
- Lagging
- Impact
- Revenue
- Unit
- $/sq ft
- Measurement frequency
- Monthly / Quarterly
- Formula
- Total store revenue / Total retail floor space in sq ft
How to calculate it
Divide total store revenue by total retail floor space in square feet.
For example, if a store took 3,000,000 in a year from 10,000 square feet, sales per square foot is 300.
Use selling space consistently, and compare with similar stores and with the same store over time.
Where it is used
Comparing stores
Find high and low performers.
Optimising layouts
Test space allocation.
Guiding property decisions
Assess rent against sales.
How to improve it
Tips and common mistakes
- Use selling space, not total area.
- Compare like formats.
- Look at margin per square foot.
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