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Retail & Allocation lesson

Space and labour

Big stores should sell more. These two measures make stores of any size comparable.

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About 5–10 minutes · no sign-up needed

The idea

Big stores should sell more. These two measures make stores of any size comparable:

Formulas

Sales ÷ Area

Key points

Sales per sq ftSales ÷ Floor space: how hard the space works.
Sales per labour hourSales ÷ Labour hours: how hard the hours work.
Compare fairlyRatios let a small store be compared with a big one.

Space and labour are a store's biggest costs, so these ratios drive staffing and layout decisions.

Practice

Try each one in your head first, then open the answer.

1. What are Toronto's sales per square foot?
$12,000 ÷ 2,000 = $6 per sq ft
2. Your report compares sales per sq ft across the five stores. Which visual?
Bar chart
3. What are Vancouver's sales per labour hour?
$15,000 ÷ 120 = $125 per hour
4. Calgary and Vancouver both make $5 per square foot, but Calgary makes less per labour hour. What does that suggest?
Calgary may have more staff hours than it needs

Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.

Try this lesson free →
About 5–10 minutes · no sign-up needed