Productivity Analysis

Productivity Analysis is directed at determining the cost-effectiveness of the store’s layout and design. Space Productivity represents how effectively the retailer utilizes its space and is usually measured by Sales per Square Foot of Selling Space or Rupee Gross Margin per Square Foot of Selling Space. Space Productivity Index is a ratio that compares the Percentage of the Store’s total Gross Margin that a particular Merchandise Category generates to its Percentage of total Store Selling Space used. This activity also involves analyzing the Non-trading/Non-selling areas of the store viz; back office area, cash tills, facilities zone, etc.