Sales Per Square Foot

DEFINITION of 'Sales Per Square Foot'

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. Units Per Transaction - UPT

    A sales metric often used in the retail sales sector to measure ...
  2. Comps

    A buzzword that refers to a retail firm's comparable same-store ...
  3. Enterprise-Value-To-Sales - EV/Sales

    A valuation measure that compares the enterprise value of a company ...
  4. Chain Store Sales

    An indicator that provides information on the monthly sales volumes ...
  5. Like-For-Like Sales

    A comparison of this year's sales to last year's sales in a particular ...
  6. Same-Store Sales

    A statistic used in retail industry analysis that compares the ...
Related Articles
  1. Stock Analysis

    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.
  2. Fundamental Analysis

    Measuring Company Efficiency

    Three useful indicators for measuring a retail company's efficiency are its inventory turnaround times, its receivables and its collection period.
  3. Investing

    Choosing The Winners In The Click-And-Mortar Game

    E-tailing has changed the way consumers do nearly everything. Do you know how to pick the best retailer?
  4. Fundamental Analysis

    Analyzing Retail Stocks

    To analyze retail stocks, investors need to be aware of the most common metrics used. Find out what they are.
  5. Professionals

    Becoming A Financial Analyst

    A career as a financial analyst requires preparation and hard work, but the payoff can be especially rewarding.
  6. Professionals

    Do You Belong In Retail?

    Making a career in retail is one of the most challenging tasks in the investment industry. Find out if it's for you.
  7. Stock Analysis

    Analyzing Microsoft's Return on Equity (ROE) (MSFT)

    Discover a detailed analysis of Microsoft's historical return on equity, and learn how its ROE stacks up to its competitors in the tech industry.
  8. Investing News

    Who Does Cheap Oil Benefit? See This Stock (DG)

    Cheap oil won't benefit most companies, but this retailer might buck that trend.
  9. Stock Analysis

    Performance Review: Emerging Markets Equities in 2015

    Find out why emerging markets struggled in 2015 and why a half-decade long trend of poor returns is proving optimistic growth investors wrong.
  10. Investing

    Don't Freak Out Over Black Swans; Be Prepared

    Could 2016 be a big year for black swans? Who knows? Here's what black swans are, how they can devastate the unprepared, and how the prepared can emerge unscathed.
RELATED FAQS
  1. How do investors interpret the same store sales ratio when analyzing retail stocks?

    Along with traditional equity valuation metrics such as the price-to-earnings (P/E) ratio, investors in retail stocks pay ... Read Full Answer >>
  2. When does a growth stock turn into a value opportunity?

    A growth stock turns into a value opportunity when it trades at a reasonable multiple of the company's earnings per share ... Read Full Answer >>
  3. What is the formula for calculating EBITDA?

    When analyzing financial fitness, corporate accountants and investors alike closely examine a company's financial statements ... Read Full Answer >>
  4. How do I calculate the P/E ratio of a company?

    The price-earnings ratio (P/E ratio) is a valuation measure that compares the level of stock prices to the level of corporate ... Read Full Answer >>
  5. How do you calculate return on equity (ROE)?

    Return on equity (ROE) is a ratio that provides investors insight into how efficiently a company (or more specifically, its ... Read Full Answer >>
  6. How do you calculate working capital?

    Working capital represents the difference between a firm’s current assets and current liabilities. The challenge can be determining ... Read Full Answer >>
Hot Definitions
  1. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  2. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  3. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  4. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  5. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center