Sales density is a measure of performance in
retailing
Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and t ...
. 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.
[Planning Dept]
, Elmbridge Borough Council
It is often quoted alongside other indicators such as
like for like sales.
[How do retailers' trading performance measures stack up?]
, Deloitte, March 2009
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.
See also
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Business-to-business
Business-to-business (B2B or, in some countries, BtoB) is a situation where one business makes a commercial transaction with another. This typically occurs when:
* A business is sourcing materials for their production process for output (e.g., a ...
*
B2G
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Consumer behaviour
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Department store
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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 a intermediate good, which is used to produce other goods. A microwave oven or a bicycle is a final good, but t ...
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Grey pound
In the United Kingdom, the expression "grey pound" is used in the context of marketing and or retail sources and refers to the purchasing power of elderly people as consumers. It is frequently used as a label for movies aimed at an older audie ...
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Like for like
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Point of sales
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Retail concentration Retail concentration refers to the Market share, 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 e ...
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Retail design
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Retail software
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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 ...
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Sales Promotion
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Shopping
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Visual merchandising
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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 t ...
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Window shopping
References
{{Reflist
Financial ratios
Sales