What is the sale on a square track?
Sale per square foot is a unit used to measure the profitability of retail stores. This number is determined by the calculation of the total sale in the given period of time and its distribution by analyzed square footsteps. In general, mainly retailers and real estate administrators are used. When calculating for one individual trade, it shows how much money it receives. Sales dollars can be a total of one month or one year. The calendar year compiles a sale that occurs from January to December one particular year. The peasant year adds all the sale in any given twelve -month period. For example, if the store opens in October, the company could be interested in viewing The Browse, Sales of October The initial year opening until the following September. This data would show the twelve -month sales data period, although the store was not open for one full calendar year.
sReal estate management often uses this measurement to determine success or failure of their shopping centers. This number can be applicable to retail centers, output centers and belt centers. To find out a square track for the entire shopping center, the property management company would together for each real estate trade together and divide this number with the overall square shot of the site.
The use of sales on a square foot as an indicator of total profitability allows retailers and real estate managers to analyze shops on the same position. The number takes into account the total square shots available in the Showcase Show. A business occupying 15,000 square feet (about 1,394 square meters) in the store will usually have higher sales dollars than a shop occupying only 1,500 square feet (about 139 square meters). However, total sales dollars do not show which shop uses its space most effectively.
, for exampleD This trade occupying 15,000 square feet could reach a total of $ 1,000,000 in US dollars (USD) in one month, while a smaller trade occupies only $ 700,000 on sale in the same month. Despite the fact that a larger trade earned more money than a smaller retailer, the other used its space with the greatest efficiency. Larger trade would have sales per square foot $ 66, while a smaller trade would have sales per square foot $ 466. In this case, the property management company could hypothetically earn more money by closing a larger trade and opening a number of equally efficient shops in place.
This statistical number can often be used to determine whether to open the store in a new location. Shopping centers, which boast high sales per square foot, often have a higher success rate when opening new shops than those with low low. Real estate managers may also be involved int on the details of the retailer to determine whether to allow this company to move to their assets. Chain stores with usually low numbers are usually not invited to open in stores that keep high figures throughout the year.