We wonder what Amazon’s number here would be. We're pretty sure we know the answer: big.
The metric was historically used to value commercial real estate where retail space was the main thing. A given store is one highly glassed area with 2,000 square feet. The store has $100,000 in sales a month, with something like $40,000 in those sales, net of the sale of the merchandise itself. The sales per square foot figure, though, usually takes the gross sales number, i.e. the total of all sales made. So, in this case, that’s $50 a foot in sales a month.
Good? Bad? Depends on the margins of what you’re selling. If it’s life insurance or feel-good vibes, then probably good. If it’s paper and pulp supplies for industrial consumers, probably bad (super low-margin business).
Like so many others, this metric needs many grains of salt to mean anything.
