FACTORS TO BE CONSIDERED
Three factors confront you as an owner-manager in choosing a location: selection of a city, choice of an area or type of location within a city; and identification of a specific site.
Sales compared to budget/target:
Actual sales $ divided by budget/target sales $
Sales compared to last year (or any other period):
Actual sales $ for a given period divided by actual sales $ for the period you want to compare to
Retail math is considered an integral part of a good retail manager’s skill set. It can be found on some companies pre-employment screening tests.
Calculation of a few commonly used profitability indicators: