Measure Performance with Retail Formulas

Aside from sales per square foot, you can also consider sales per linear foot of shelf space when you have a large number of wall units. Categorizing sales by department and measuring inventory turnover can provide insight about which items are overstocked or understocked. For better accuracy than inventory turnover, consider measuring the gross margin return on investment. Calculating the sales per customer and sales per employee helps retailers make hiring decisions and determine the average total of each transaction.

6 Ways to Increase Your Retail Efficiency