What are some ways Walmart can measure its productivity within the retail industry?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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There are a number of different ways that a retail store like Wal-Mart can measure its productivity.  These include:

  • Sales per square foot of selling space.  This tells Wal-Mart how well it is using its stores.  It allows it to compare stores of different sizes as well.
  • Sales per linear foot of shelving.  This is another way to measure how well space is being used.  This can also help the firm to determine what the optimal use of its space is.  Is it more productive when it packs more shelf space into a given store area?
  • Sales per employee hour worked.  This shows how well the firm is using its workers.  It can help to determine how productive it is being because it measures the output compared to the number of hours worked by employees.

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