Operations Buzz

Does (Retail) Size Matter? $/sq. ft. of Mall Stores

November 09th, 2010

by

I recently took my daughter to a birthday party at a local mall. Having a couple of hours to kill, I headed to the cramped and crowded Apple Store to checkout the new MacBook Air. After succumbing to the allure of the iPod Touch and a quick coffee stop at Barnes and Noble’s Café, I settled in a comfortable sofa, like many others waiting, listening to the live piano music at the bright and airy Nordstrom that anchors the mall. I could not help wonder that this comfortable space sandwiched between Women’s Shoes and the make-up counters was a lot larger than the Apple store. How large the stores in the mall are and how effectively they use their space? Read on…do the results surprise you?

The attached graphic shows the size in square feet of popular mall stores and how much they sell in a year per square feet (See Notes 1 & 2 for information on calculations). I have also added a few other stores like Best Buy, Wal-Mart, and Home Depot into the mix as a basis for comparison.

Most retailers use sales per square feet to measure how efficiently they use their retail space compared to their closest competitors. For example an average J. Crew store is about 6200 sq. ft. and generates $573/sq. ft. while the Abercrombie & Fitch store is just over 7000 sq. ft. and generates sales of $489/ sq. ft. Does this mean J. Crew is outperforming A & F? It’s a little more complicated – they each stock different styles and have branded stores and cater to a different demographic (although there may be an overlap). But at least based on this measure, J. Crew seems to be doing more with less. Costco generates $970 per sq. ft. with the average store size close to 142,000 sq. ft. while its biggest competitor Sam’s Club generates about $550 per sq. ft. with an average size of 132,000 sq. ft.

So you noticed! By far the best performing retailer is Apple. Apple’s latest report estimates an average store sales of $34.1 million. With an average store size of 6,000 sq. ft., that translates to a productivity number of $5,683 per sq. ft.! According to Bloomberg, Apple’s marquee store on Fifth Avenue (the “Glass Cube”) does almost $350 million in sales in a year. At 10,000 sq. ft. that’s $35,000 per square feet making it possibly the highest grossing retailer on 5th Avenue. Tiffany & Co. is probably the closest to Apple with their sales floor on 5th Avenue generating about $18,000 per sq. ft. (system-wide Tiffany & Co. averages to about $2600/sq. ft.)

When I picked up my six-year old from her party, she knew exactly where to go next – “Daddy lets learn how to make movies!!” Cha Ching! for Apple’s One-to-One service. No wonder…

Notes:

1. All store data are from 2008. The only exceptions are Apple and Best Buy for which I used 2010 data to reflect the sales of the iPhone & iPad.

2. Most of the data is readily available from a retailer’s filings with the Securities and Exchange Commission. For example from Best Buy’s 2010 filing, we know that they have 1,192 stores in the USA with a total square footage of 42,488,000 sq. ft. So the average store size is simply 42,488,000/1,192= 35,644 sq. ft. From the same 10K filing, the reported domestic sales are $37,314 million, so the sales per square feet is simply $37,314 million/42,488,000 = $878. Obviously not all the square footage is used for selling, — some is used for inventory, administrative offices and such so the calculations reflect gross square footage. While approximate, these calculations provide insightful snapshots into retail space productivity.

Recent articles

Share & enjoy

Comments

Leave a comment


*



友情链接:代孕 代孕 代孕网 代孕 代孕 武汉代孕 捐卵 代孕 代孕网 深圳代孕 代孕 武汉代孕 代孕 代孕 代孕网 代孕

代孕|捐卵|代孕网|代孕|北京代孕|代孕网|代孕|代孕网|武汉代孕|代孕|武汉代孕|代孕||深圳代孕|代孕| 捐卵|武汉代孕|武汉代孕|武汉代孕| 武汉代孕|代孕|代孕网 |武汉代孕 |代孕|| 广州代孕 |捐卵|上海代孕|武汉代孕|代孕|代孕网|武汉代孕 | 捐卵|代孕|代孕

  • kyrie irving shoes
  • lebron james shoes
  • kyrie 4
  • puma fenty
  • lebron soldier 11
  • asics shoes
  • stephen curry shoes
  • pg shoes
  • puma fenty slides
  • lebron 14
  • Curry Shoes
  • puma rihanna creepers
  • nmd human race
  • curry shoes
  • yeezy shoes
  • adidas nmd
  • lebron soldier 10
  • puma fenty
  • lebron soldier
  • lebron 15
  • curry one
  • kd shoes
  • Curry 1
  • nike vapormax
  • kyrie 1
  • kyrie 2
  • adidas nmd shoes
  • john wall shoes
  • ugg 5815
  • stephen curry shoes
  • nike pg 2
  • kyrie irving shoes
  • adidas john wall
  • j wall shoes
  • http://www.asicsshoes.us.com
  • curry 3 shoes
  • kyrie irving jersey
  • curry 3
  • kd 9
  • kd shoes
  • Kevin Durant shoes
  • kobe 12
  • http://www.kd-9.org
  • yeezy boost 350 v2
  • http://www.kyrieirvingshoes.us.com
  • kd shoes
  • Curry 3
  • Curry 1
  • adidas yeezy wave runner 7000
  • stephen curry shoes
  • http://www.curry1.org
  • kevin durant shoes
  • yeezy boost
  • adidas nmd Runner
  • adidas nmd r1
  • kobe 10
  • adidas crazy explosive
  • adidas tennis hu
  • adidas tennis hu pharrell
  • air max 90
  • kobe 10 shoes
  • adidas nmd xr1
  • kobe shoes
  • curry one
  • curry one
  • hyperdunk 2016
  • kyrie irving shoes
  • nike hyperdunk 2016
  • kobe bryant shoes
  • adidas nmd
  • kobe bryant shoes
  • hyperdunk shoes
  • vans shoes
  • Hyperdunk Flyknit Shoes
  • vans outlet
  • vans for sale
  • nike hyperdunk
  • Curry 3
  • yeezy 350 boost
  • Baseball Bats
  • kobe bryant shoes
  • lebron soldier
  • kyrie 4 Shoes
  • kyrie 4
  • under armour shoes
  • nike lebron soldier
  • adidas tubular instinct
  • adidas tubular instinct boost
  • adidas ultra boost
  • adidas tubular
  • lebron soldier shoes
  • air jordan shoes
  • air max shoes
  • nike air max
  • air max nike
  • lebron soldier shoes
  • soldier shoes
  • air max 90
  • air max 95
  • bape hoodie
  • adidas nmd human race
  • nmd human race
  • bape jacket
  • bape hoodie
  • bape clothing
  • ben simmons jersey
  • bape hoodie jacket
  • bape hoodie shark
  • bape puma
  • bape Pants
  • Asics Gel Kayano
  • kobe 11
  • Curry One
  • stephen curry shoes
  • Kobe Shoes
  • harden shoes
  • kobe 11 shoes
  • Curry 2
  • Curry 2
  • Harden 1
  • Curry 2
  • Gel Kayano
  • James Harden Shoes
  • curry one
  • lebron soldier
  • lebron 10 soldier
  • kyrie 4
  • nike lebron soldier
  • Curry Shoes 2015
  • Harden 1 Shoes
  • James Harden Shoes
  • Cheap Baseball Bats
  • Harden Shoes
  • Asics Kayano
  • James Harden 1
  • Baseball Bats For Sale
  • Under Armour Curry Shoes
  • kobe x
  • Kobe 10
  • Asics Running Shoes
  • Baseball Bats Outlet
  • Cheap Harden 1
  • kobe bryant shoes
  • kobe shoes
  • Cheap Curry Shoes
  • yeezy 950
  • Baseball Bats Store
  • Curry One Mvp
  • Nike Harden Shoes
  • Asics Shoes
  • Baseball Bat
  • Nike Kobe Shoes
  • Harden Shoes
  • Under Armour Store
  • Baseball Bats Sale
  • Asics Shoes Women
  • Curry 2 Shoes
  • Curry Shoes
  • curry 1
  • Stephen Curry Shoes
  • Under Armour curry one
  • James Harden Shoes
  • stephen curry shoes
  • Steph Curry 1
  • Asics Shoes Men
  • Stephen Curry Shoes
  • kobe basketball Shoes
  • Nike Harden Shoes
  • Nike James Harden Shoes
  • Harden Shoes For sale
  • Harden Shoes Sale
  • yeezy boost
  • new balance shoes
  • kanye west shoes
  • http://www.yeezyshoes.us.com
  • kobe x shoes
  • kd 8
  • adidas rose shoes
  • derrick rose shoes
  • adidas nmd xr1
  • adidas nmd r1
  • adidas nmd
  • adidas nmd runner
  • adidas nmd pk
  • adidas nmd footlocker
  • d rose shoes
  • rose shoes
  • d rose shoes
  • rose shoes
  • adidas nmd r1 primeknit
  • joel embiid jersey
  • nike air vapormax flyknit
  • new era caps
  • adidas rose shoes
  • kobe bryant shoes
  • kobe shoes
  • kobe 12 shoes
  • kyrie 3
  • nike kyrie 3
  • kyrie 3 shoes
  • air max shoes
  • nike air max shoes
  • stuart weitzman boots
  • nike air max
  • kevin durant shoes
  • kd vii
  • kd 7
  • curry 3
  • curry 3 shoes
  • ua curry 3
  • curry 3 low
  • kyrie 3
  • adidas porsche shoes
  • adidas porsche design shoes
  • lebron james shoes
  • kobe shoes 2015
  • nike air shoes
  • nike air max shoes
  • kyrie 3
  • kyrie 3 shoes
  • nike kyire 3
  • cheap air max shoes
  • air max shoes
  • kd vii shoes
  • kd shoes
  • kevin durant shoes
  • adidas zx flux
  • adidas zx
  • jordan retro
  • adidas tubular
  • adidas flux
  • cheap kd shoes
  • adidas ultra boost
  • kobe shoes nba
  • palladium boots
  • lebron soldier 10
  • nike air max 2017
  • air max 2017
  • lebron soldier
  • lebron soldier shoes
  • nike lebron soldier
  • air jordan retro/a>
  • cheap kobe shoes
  • soldier 10
  • kd shoes
  • kevin durant shoes
  • kevin durant shoes
  • jordan retro shoes
  • hyperdunk 2017
  • kd 7 shoes
  • kevin durant shoes mvp
  • porsche design shoes
  • adidas porsche design
  • adidas shoes
  • kevin bryant shoes
  • kd shoes store
  • kd 7
  • herve leger dresses
  • kobe shoes
  • kobe bryant shoes
  • kd shoes
  • kd sneaker
  • adidas alphabounce
  • adidas boost
  • adidas d rose 7
  • jeremy scott adidas
  • nike sb dunk
  • jeremy scott wings
  • jeremy scott shoes
  • js wings
  • adidas terrex
  • lebron shoes
  • kobe shoes
  • balenciaga shoes
  • kobe bryant shoes
  • asics gel kayano 23
  • canada goose
  • asics gel kayano 22
  • asics gel lyte iii
  • adidas yeezy boost
  • adidas eqt
  • kd 10
  • nike kd 10
  • ugg classic boots
  • kyrie 3
  • adidas nmd r2
  • adidas nmd womens
  • air jordan 1
  • keen uneek sandals
  • prada shoes
  • air jordan 31
  • nike air poresto
  • nike air vapormax
  • nike huarache
  • nike vapormax shoes
  • calvin klein
  • curry shoes
  • stephen curry shoes
  • kyrie irving shoes
  • kyrie irving basketball shoes
  • calvin klein underwear
  • calvin klein outlet
  • yeezy boost
  • reebok pump fury
  • reebok pump superme
  • adidas yeezy boost 350 v2 zebra
  • adidas iniki
  • wholesale hats
  • wholesale caps
  • adidas superstar
  • curry 4
  • curry 4
  • kd 10
  • nike kd 10
  • kevin durant 10
  • adidas pure boost
  • curry 4
  • birkenstock sandals
  • birkenstock shoes
  • nike roshe run
  • kyrie 4
  • puma suede
  • nike zoom vaporfly
  • mizuno shoes
  • ultra boost shoes