Gross profit per square foot is utilized by a supermarket owner to assign space among merchandise assortments within a department.Larger amounts of space go to the product categories and brands with the highest profitability per square foot.This retailer determines space needs by _____.

Question

Quizplus · Accepted Answer

The sales-productivity ratio is a measure of the sales generated per square foot of retail space. This metric is used by retailers to determine the productivity of their retail space and to allocate space to different product categories based on their profitability per square foot. Therefore, it is likely that the supermarket owner in this case is using the sales-productivity ratio to determine space needs for their different merchandise assortments.

Gross Profit Per Square Foot Is Utilized by a Supermarket