If you can increase your sales per square foot, you will make a profit simultaneously. Sales per square foot is the sales divided by the square footage of the store space. There is pretty much always a connection between sales per square foot and net profits.
How Does A Retailer Increase Sales Per Square Foot?
The stores that are successful are the ones that make large profits in relation to the utilization of their sales space. For example, sporting goods and tackle stores should be producing around $150 to $250 per square foot in sales.
Merchandising
Your store should be stocked with in-demand items that are at higher price points and in popular sizes and colors. Keep your store’s inventory selection current and creative. If items aren’t selling change the location of them in your store, the signage, pricing, or display. The retailer’s main goal should be keeping inventory flow steady, moving product in and out of the store.
Fresh Inventory
It is important to keep your inventory fresh and exciting. People want to see new items, not just the same old stuff. Keep the items that continuously sell well, but add new products into the mix regularly. End caps, front of store displays, and main aisle presentations are great places to highlight new items.
Stock Up On Key Items
If you are out of key, on-demand items, your business will suffer. Making sure to keep a positive stock on these key items will be essential to garnering healthy sales. According to Fishing Tackle Retailer, it is a good idea to run a quarterly ABC sales analysis versus a stock position analysis. Identify the items that are generating the most sales and implement automatic stock replenishment.
Improving Online Presence
Having a strong online presence is necessary to increase sales per square foot. An optimized website, the ability to sell online, and an active social media presence are all great ways to maintain a good online presence.
Conduct Your Business By The Numbers To Increase Their Sales Per Square Foot
It is important to keep track of and analyze operational data, which includes sales, margins, expenses turns, stock-outs, etc. Understanding what all of these numbers mean is going to be vital because you will need to take the necessary actions based on those numbers.
In conclusion, retailers should always be looking for ways to increase sales per square foot and striving for a better way to operate. Being open to new concepts and practices can really propel your sales numbers. Contact the marketing experts at Nicklaus Marketing today to help you get started!
