How much inventory per square foot should a retail store have?

Answer 1

This would vary greatly depending on the type of store and it's location. However, if you make some assumptions you could estimate as follows: If a retail store in a certain area generates $250 in sales per square foot per year, and their cost is 60% of sales, then total inventory for the year would be $150. If you want inventory to turn 12 times per year, you should have 12.50 of inventory per square foot on hand. Change these assumptions and do the same calculation.