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Sales density is a measure of performance in retailing. It is the revenue generated for a given area of sales space, and is presented as a monetary value per square metre. The higher the figure, the more efficiently the floorspace is being used.
Sales density is a ratio computed dividing the total retail sales over a year by the total surface of all the stores owned by the retailer (potential wholesale/franchising sales are usually not included). It is disputed whether the online sales of the retailer should be included in the numerator of the ratio given the high interdependence in the marketing strategy of online sales and own stores sales.
- Planning Dept, Elmbridge Borough Council
- How do retailers' trading performance measures stack up?, Deloitte, March 2009