Components of Sales — Width and Depth

Sales may be broken down to two components — width and depth — the number of stores distributing, and the sales per store.

$$ \text{Sales = Number of stores distributing × Sales per store}$$

These components are interdependent— as the number of stores distributing a product expands, the stores start to cannibalize one another, adversely affecting the sales per store.

A wide range of metrics are used by managers to assess the sales and distribution of their brands, and to formulate sales strategies and plans. The metrics pertaining to the sales per store are covered in detail under the section "Measures of Assortment".

Measures for distribution were initially introduced in Chapter Retail Tracking. These measures are covered in more detail in the following paragraphs.

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