Sales Per Square Foot

What is 'Sales Per Square Foot'

Sales per square foot is a popular sales metric used in the retailing industry. Sales per square foot is simply the average revenue a retail business creates for every square foot of sales space.

BREAKING DOWN 'Sales Per Square Foot'

Sales per square foot is used by businesses and analysts alike to measure the efficiency of a store's management in creating revenues with the amount of sales space available to them. The higher the sales per square foot, the better job mangement is doing of marketing and displaying the store's products.

RELATED TERMS
  1. Foot Traffic

    The presence and movement of people walking around in a particular ...
  2. Least Squares

    A statistical method used to determine a line of best fit by ...
  3. Least Squares Method

    A statistical technique to determine the line of best fit for ...
  4. Sum Of Squares

    A statistical technique used in regression analysis. The sum ...
  5. Square Position

    A term used in foreign-exchange trading. The term "square position" ...
  6. Comparable Store Sales

    The amount of revenue a retail location generated in the most ...
Related Articles
  1. Personal Finance

    Square Enters the Online Lending Space (SQ)

    Jack Dorsey's Square will expand services relating to Square Capital's cash advance service, becoming a key player in the traditional online lending space.
  2. Trading

    Understand How Square Works before the IPO

    Square is reported to have filed for an IPO. For interested investors wondering how the company makes money, Investopedia takes a look at its business.
  3. Markets

    Square Beats on First Public Earnings Report (SQ, TWTR)

    With Square opting to withhold forward guidance, investors would do well to withhold some enthusiasm.
  4. Investing

    Key Financial Ratios For The Retail Industry

    The retail industry is measured on sales growth in existing store, forecasted based on foot traffic and ticket data, and the impact on profitability ratios.
  5. Insights

    Why Amazon's Altruistic Move May Not Benefit Square (AMZN)

    Amazon is offering Square credit card readers to customers of its shuttered Amazon Local Register program. But, it may not move the needle much for Square.
  6. Personal Finance

    Why Square Stock Sank 7.5% Last Week (SQ, TWTR)

    While the revenue growth seems (for now) unlimited, the company is also spending quite a bit to strengthen its position in a highly competitive payments space
  7. Investing

    Home Depot's 6 Key Financial Ratios (HD)

    Learn about important financial ratios used to determine the performance of retailer Home Depot; these give a quick snapshot of the company's profitability.
  8. Markets

    The Demise of the Department Store (SHLD, M, JCP)

    According to a new report, department stores need to cut down on their physical locations to maximize their sales per square foot.
  9. Entrepreneurship & Small Business

    Square vs. Stripe (SBUX, TWTR)

    Square and Stripe are transforming payment processing. However, while similar in many ways, the companies do have their fair share of differences.
  10. Markets

    Foot Locker Stock Plunges on Q1 Revenue Miss (FL)

    Foot Locker is working through an environment where consumers are not only changing their shopping preferences, but are buying more items online.
RELATED FAQS
  1. How do investors interpret the same store sales ratio when analyzing retail stocks?

    Examine the importance of the same-store sales ratio as a key equity evaluation metric utilized by investors interested in ... Read Answer >>
  2. What components are factored in determining net sales?

    Understand the key components that factor into determining a company's net sales. Learn about the underlying drivers of those ... Read Answer >>
  3. What can gross sales tell you about a business?

    Learn more about gross sales and net sales. Find out what the gross sales figure reveals about a business and how investors ... Read Answer >>
  4. What is the difference between revenue and sales?

    Learn to distinguish between a company's revenue and its sales, and see why the distinction is important when analyzing a ... Read Answer >>
  5. Why is the strategy of 'always be closing' (ABC) popular in retail sales?

    Understand how the term ''always be closing'' is related to retail sales. Learn about the benefits and drawbacks of selling ... Read Answer >>
  6. What key conditions might explain a company's declining net sales in spite of increasing ...

    Explain why a company reports a decline in net sales even though it generates an increase in revenues during the same reporting ... Read Answer >>
Hot Definitions
  1. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  2. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  3. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  4. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  5. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  6. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
Trading Center