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 distribution expands,
stores start to cannibalize one another, adversely affecting the sales
velocity 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 relating to the velocity of sales are covered in
detail under Section
Measures of Assortment and Sales Velocity.
Initially introduced in Chapter 29,
Retail Tracking,
measures for distribution are further expounded upon in the subsequent section for better
understanding and analysis.
