Retail Management for Spas | Chapter 5.2 | Retail Sales Contribution by Merchandise Classification

Some spas with significant retail revenue will want to monitor retail sales by classification as compared to plan. This information is valuable as it can aid spa professionals in:

  • Making adjustments to the spa’s inventory levels of the various classifications
  • Considering the addition of new merchandise in a product classification
  • Reducing emphasis on slower selling classifications

Retail sales are broken down into the four basic classifications of apparel, gifts and accessories, products, and other retail, along with several sub-classifications of each. Chapter 2 goes into greater detail about classifications and sub-classifications.

This measurement is also called mix of sales and is calculated with each classification divided by total retail sales.

So, for example, if the $10,000 Reuben did in total retail revenue included $2,800 in apparel sales, the apparel classification contribution would be 28 percent ($2,800 ÷ $10,000).

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