Question

Merchandise productivity is defined as?

1) Net sales divided by the total square feet of retail floor space
2) The desired amount of sales per square foot of store space
3) Net sales divided by the number of full-time-equivalent employees
4) The desired amount of sales per full-time-equivalent employee
5) Net sales divided by the average dollar investment in inventory

Answer 1

Merchandise productivity is defined as net sales divided by the total square feet of retail floor space. It measures the efficiency of a retail store in generating sales relative to its retail floor space.

Step-by-step explanation:

The correct definition of merchandise productivity is 1) Net sales divided by the total square feet of retail floor space.

Merchandise productivity measures the efficiency of a retail store in generating sales relative to its retail floor space. It helps assess how much sales a store is able to generate per square foot of space.

For example, if a store has net sales of $500,000 and a total retail floor space of 10,000 square feet, the merchandise productivity would be $50 per square foot ($500,000/10,000 square feet).