Productivity of Space

What gross profit dollars does your company generate per square foot? In our productivity of space analysis, frequently we have found classifications and departments that are significantly under performing. Just as in Assortment Analysis, classifications that are performing above average should be expanded and those that are under performing should be reduced or eliminated. The same approach should be used to space analysis. The most important per square foot number is gross profit dollars, not sales.

Few shoe or apparel stores average gross profit dollars per square foot in the $180-$450. Pace has achieved this performance in undistinguished real estate, located in small and midsize markets. In more metropolitan demographics, performance is considerable higher.

Return on Investment-ROI

Inventory turnover has a much greater impact on ROI than margins. Pace has consistently delivered to clients inventory turnover 50-100% greater than industry benchmarks. This performance has been achieved in even our smallest clients with volume levels where high turnover is much more difficult. In a very profitable nationwide chain, Pace increased turnover by over 30%.