Floor space efficiency is the best measure a retailer can have in judging the performance of any part of the business.

Retailers pay rent per square metre of floor space yet few measure the performance of their business based on space allocated by department or category.

By ignoring this metric in favour of overall product category performance can hide performance problems within a business.  By focusing only on margin and not floor space efficiency can also hide business growth opportunities.

Consider, for example, a product category which generates exceptional sales, uses little floor space but which delivers only a slim margin.  A total margin contribution report will show the product as inefficient.  However, a margin per square metre of floor space will most likely show the category as a hero of the business.

Smart retailers need to look at the performance of their business from multiple views, including return on floor space.  Tower Systems retail management software provides tools which enable such multiple views.  In addition to floor space performance reporting, we also offer shelf space reporting - taking the analysis of the performance of the business to an even deeper level.

By using our software to undertake such deep analysis, smart retailers unlock greater value from their technology investment.

We will gladly help any of our retailer partners to create and assess these and other reports in our software.