The retail Profit Wedge is a quick way to see the financial performance of your store or chain of stores. It is simple. Just three measures: Net sales, Gross margin and Expenses, each one divided by total square meter of square foot. When you measure this variable per square meter or square foot, you can compare several stores of your own chain or from diferent companies.
This is a real case from a woman麓s shoe store. Even the net sales per square meter increased in those years, the increase of Gross margin per square meter stagnated and was not enough to compensate the increase in Expenses per square meter. Want to compare your stores? Develop cluster of stores and do it! From example: those stores that are in shopping centers can be one cluster, and the stores that are in the street can be another.
