Changes such as ending prices with the number 9 or introducing tiered pricing can make a difference in sales , so consider testing such strategies when pricing your products.
The same goes for your promotions. Test different types of offers and discounts to see what brings in sales without cutting too much into your margins. There are, of course, various types of promotional tactics including BOGO offers, free gifts, loss leaders, and more. Electronics and jewelry stores always have high sales per square ft. People spend more with these retailers simply because their products cost more.
Depending on your store, you could try one or more of the following:. Upselling and cross-selling are two of the most common and useful tactics for increasing transaction value, and ultimately sales per square foot.
As a refresher, upselling entails marketing a pricier version of the product that the customer is looking to buy. Think of it as selling an upgrade. Cross-selling, on the other hand, means selling items that complement the product that customer is purchasing. Done right, upselling and cross-selling can help add value to the purchase.
But if you do it wrong, you could come off as being pushy and miss out on the sale. Check out these best practices from Jennifer and Danila, the co-owners of Convey boutique in Toronto:. Set up a loyalty program that not only encourages customers to shop at your stores but also entices to spend more and come back. There various types of loyalty programs in retail.
The most common ones include:. The budget of your customers directly affects the size of their transactions. One way to do this is to offer flexible payment options such as lay-by or installments. Giving your customers the option to pay for their purchase over time means they can buy more of what they want while being able to budget. Are you in Australia or New Zealand? Check out our integration with Afterpay.
Without great employees, your store performance will likely suffer. In the context of increasing sales per square foot, some of the things you could do with your staff include:. Attracting more visitors to your retail location can also lead to an increase in sales per square foot. Remember that while people like to browse or shop around online, many shoppers prefer to complete the purchase offline — particularly when it comes to categories such as apparel and cosmetics.
Then have them save their favorite items to a wishlist or shopping basket via mobile app or online site. Before finally offering a coupon they can redeem when coming in-store to try on the items. Knowing which items are regularly bought together and placing these close to each other can be great to increase Average Transaction Value ATV. But also ensuring you have staff who are well-trained in your product catalog and able to upsell customers as much as possible can be a real game changer.
On a related note, part of having a digital retail strategy is offering click-and-collect, a service that lets customers buy online and pick up their items in-store. Needless to say, the more people who walk into your store, the more potential sales you can have. Contact Us. Get Started Free. Sign up for free. Overview The Sales per Square Foot KPI measures how much sales revenue you are able to generate for each foot of retail space provided.
Key terms Sales revenue : Income received through sales activities. Average Purchase Value. Incremental Sales. Point of Purchase. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads.
Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Your Money. Personal Finance. Your Practice. Popular Courses. Financial Analysis How to Value a Company. What Is Sales per Square Foot? Key Takeaways Sales per square foot is a key measure of success in brick-and-mortar retailing.
Managers and analysts consider a higher number to be proof of greater efficiency. The measure is becoming less relevant in today's omnichannel marketing environment. Article Sources.
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