Store sales per square foot is viewed as a major component of retail success. Since it is indicative of how efficiently a company uses its assets, the higher the sales per square foot, the better. Sales per square foot is calculated as total sales for a given period (usually a year) divided by store square footage.
For example, if a company does $10 million a year in sales, and runs 10 stores that are 1,000 square feet each, its sales per square foot is $1,000.
$10,000,000 / 10,000 sq. ft. = $1,000
Most companies aren’t using their square footage that efficiently though. Most fast-casual restaurant franchises only sell about $150 per square foot. Popular retail stores like JC Penney’s and Macy’s only average $160 to $200 per square foot. Even stores that are growing and becoming more prominent in shopping malls, like Target and Dick’s Sporting Goods, are doing only $200 to $300 per square foot.
However, some companies are doing it right. An article in Fortune listed the top 10 mall-based retail stores by sales per square foot in 2014. The best? Apple, which did a staggering $4,798 per square foot. The others coming in on the list include:
2. Tiffany & Co, a luxury jeweler: $3,132
3. Michael Kors, which sells women’s handbags & accessories: $1,895
4. Lululemon Athletica, a sportswear & loungewear company: $1,675
5. Kate Spade, which sells women’s handbags & accessories: $1,558
6. Coach, which sells women’s handbags & accessories: $1,416
7. Kay Jewelers, a jeweler: $1,035
8. Tumi, which sells luggage & travel products: $1,034
9. Costco Wholesale, which sells a variety of products at wholesale prices : $1,032
10. Select Comfort, which manufactures Sleep Number beds: $1,023
How does Mobile Outfitters compare?
Well, our retailers do, on average, $240,000 to $500,000 in sales per year, and most of our kiosks are about 200 square feet. That’s anywhere from $1,200 to $2,500 in sales per square foot, ranking us as high as number 3 on this list!
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When you consider cost of entry, it is obvious that opening a Mobile Outfitters kiosk is a smart investment. With relatively small upfront costs, especially when compared to popular franchise stores like Subway and 7-Eleven, Mobile Outfitters produces stellar return on investment. We have higher profit margins, with less space, on a lower investment. That means a Mobile Outfitters kiosk makes more efficient use of its assets.
Want to see how others have taken advantage of our margins and set themselves from their competitors in the kiosk market. Download our case study today!
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