How to Increase Retail Sales per Square Foot

How to Increase Retail Sales per Square FootA common barometer for having a successful retail store is the amount of sales per square foot (ft) you have from month to month or year to year.  Leasing retail space is expensive so it's important to ensure that each store maximizes its gross sales per square foot of space leased.

The better location you have the more expensive the rent will be so keeping customers in the store, offering a variety of products, and getting them to purchase more will help increase your bottom line.

Tips on Increasing Retail Sales Per Square Foot

  1. Maximize the denseness of your products in the aisles and on the shelves.  It may look more crowded to the average shopper however it does typically cause them to purchase more.
  2. Discount certain items to help bring shoppers into the store.  These “loss leaders” may not make you a profit (or you could lose some money) however they are used by industry veterans to lure customers into a store hoping they will buy other products as well.
  3. Position and organize products close to each other that are similar so it's easy for customers to find what they need or want.  For example putting juices near bottled water or mustard next to ketchup.
  4. You have to have a balance between having a great location and rental cost.  Having a high traffic location will help increase the amount of walk in traffic, thus potentially increasing sales per sf, however if the rental costs are too expensive you could decrease your profits.

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