How to Increase Retail Sales per Square Foot
The amount of sales per square foot is a common benchmark of success in the retail industry. Because commercial space is expensive, it is important for stores to maximize the ratio of sales to the amount of space they lease. The better a store's location, the more it is likely to sell per square foot, but the higher the lease is likely to be. Keeping customers in the store and enticing them with a variety of goods helps to increase the bottom line of a retail business.
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Instructions
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Maximize the density of merchandise on shelves and in aisles. Although a crowded look may not be as pleasing to the average shopper, it does cause him to buy more, according to the New York Times.
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Offer discounted items to bring customers into the store. These items are known as "loss leaders" in the industry; although the store may not make a profit, and may even lose money on them, once customers are in the store to buy the cheap item, they buy other merchandise as well.
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Organize merchandise so that customers can find what they want. Particularly in large grocery and hardware stores, sales are dependent on shoppers being able to locate the precise item they are looking for. This requires a highly evolved method of organization that is based on like items being situated together, for example putting salsa near ketchup and bottled water near juice.
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Find an optimum balance between prime retail location and cost. High-traffic locations will increase sales per square foot, but if the lease is too expensive, it will not lead to increased profits. Stores that need less floor space such as jewelry stores will fare better in an expensive location than stores that need lots of room, such as appliance showrooms.
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