Sales Density

Sales density refers to the amount of revenue generated per square foot of retail space. It is a key metric for assessing the efficiency and profitability of a retail store, particularly in businesses with physical locations like malls or department stores. A higher sales density indicates that a retailer is using its space more effectively to generate revenue. Sales density can also provide insights into the attractiveness of a store's location, product assortment, and customer traffic.

Example

A clothing retailer with $1,000 in sales per square foot of store space has a higher sales density compared to a competitor generating only $700 per square foot.