Sales density is a measure of performance in
retail
Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is the sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholes ...
ing. It is the
revenue
In accounting, revenue is the total amount of income generated by the sale of product (business), goods and services related to the primary operations of a business.
Commercial revenue may also be referred to as sales or as turnover. Some compan ...
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.
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, Elmbridge Borough Council Elmbridge may refer to these places in England:
;Current uses
*Borough of Elmbridge, a district in northwest Surrey
* Elmbridge, Gloucester, Gloucestershire, a suburb and electoral ward
*Elmbridge, Worcestershire, a small village and civil parish
...
It is often quoted alongside other indicators such as
like for like
Like for like (LFL) growth is a measure of growth in sales, adjusted for new or divested businesses. This is a widely used indicator of retailers' current trading performance. The adjustment is important in businesses that show a significant dynam ...
sales.
How do retailers' trading performance measures stack up?
, Deloitte
Deloitte is a multinational professional services network based in London, United Kingdom. It is the largest professional services network in the world by revenue and number of employees, and is one of the Big Four accounting firms, along wi ...
, March 2009
Overview
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
Marketing strategy refers to efforts undertaken by an Organizational structure, organization to increase its sales and achieve competitive advantage. In other words, it is the method of advertising a company's products to the public through an est ...
of online sales and own stores sales.
See also
* Business-to-business
Business-to-business (B2B or, in some countries, BtoB) refers to trade and commercial activity where a business sees other businesses as its customer base. This typically occurs when:
* A business sources materials for its production process for ...
* Business-to-government
Business-to-government (B2G),Market Business NewsWhat is B2G or business-to-government? Definition and examples accessed 31 August 2020 also known as business-to-public-administration (B2PA) or business-to-public-sector (B2PS) refers to trade bet ...
* Consumer behaviour
Consumer behaviour is the study of individuals, groups, or organisations and all activities associated with the Purchasing, purchase, Utility, use and disposal of goods and services. It encompasses how the consumer's emotions, Attitude (psy ...
* Department store
A department store is a retail establishment offering a wide range of consumer goods in different areas of the store under one roof, each area ("department") specializing in a product category. In modern major cities, the department store mad ...
* Final goods
A final good or consumer good is a final product ready for sale that is used by the consumer to satisfy current wants or needs, unlike an intermediate good, which is used to produce other goods. A microwave oven or a bicycle is a final good.
W ...
* Grey pound
* Point of sales
The point of sale (POS) or point of purchase (POP) is the time and place at which a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice f ...
* Retail concentration Retail concentration refers to the market-share generally belonging to the top 4 or 5 mass distribution firms present in a regional market, as a percentage of the total.
Retail concentration is not simply a concentration ratio as is emerging in th ...
* Retail design
Retail design is a creative and commercial discipline that combines several different areas of expertise together in the design and construction of retail space. Retail design is primarily a specialized practice of architecture and interior design ...
* Retail software
Retail software is computer software, typically installed on PC-type computers post 2005, delivered via the Internet (also known as cloud-based). Traditionally this software was delivered via physical data storage media sold to end consumer but ve ...
* Retailtainment
Retailtainment is retail marketing as entertainment. In his book, ''Enchanting a Disenchanted World: Revolutionizing the Means of Consumption'' (1999), author George Ritzer
George Ritzer (born October 14, 1940) is an American sociologist, prof ...
* Sales promotion
Sales promotion is one of the elements of the promotional mix. The primary elements in the promotional mix are advertising, personal selling, direct marketing and publicity/public relations. Sales promotion uses both media and non-media marketing ...
* Shopping
Shopping is an activity in which a customer browses the available goods or services presented by one or more retailers with the potential intent to purchase a suitable selection of them. A Retail#Shopper profiles, typology of shopper types ha ...
* Visual merchandising
Visual merchandising is the practice in the retail industry of optimizing the presentation of products and services to better highlight their features and benefits. The purpose of such visual merchandising is to attract, engage, and motivate the c ...
* Wardrobing
Return fraud is the act of defrauding a retail store by means of the return process. There are various ways in which this crime is committed. For example, the offender may return stolen merchandise to secure cash, steal receipts or receipt tape ...
* Window shopping
Window shopping, sometimes called browsing, refers to an activity in which a consumer browses through or examines a store's merchandise as a form of leisure or Consumer behaviour, external search behaviour without a current intent to buy. Depend ...
References
{{Reflist
Sales
Financial ratios