Boston Pizza wants to determine how effective their retail format is compared to other pizza establishments in the local area.The calculation for this indicator is arrived at by determining the __________ for their store and comparing it against the same indicator for all of the other local pizza outlets.

Question

Quizplus · Accepted Answer

Same store sales growth is a commonly used indicator to measure the performance of a retail establishment, as it compares the sales growth over a certain period of time of stores that have been open for at least a year. By comparing Boston Pizza's same store sales growth to that of other local pizza establishments, the effectiveness of their retail format can be determined. The other options, such as sales per square foot, gross margin, net profit, and net present value, do not specifically measure the effectiveness of the retail format and may not provide a direct comparison to other local pizza outlets.

Boston Pizza Wants to Determine How Effective Their Retail Format