Work out sales per employee instantly with clear inputs, formula shown and shareable results.
Sales per FTE is the standard labour productivity measure, but gross profit per unit of staff cost is the one that determines viability: it must comfortably exceed 1.0 for the store to cover occupancy and overhead after paying its people.
Sales per FTE
Sales per FTE = Annual sales / Full-time equivalents
Labour productivity
Gross profit per staff currency = Gross profit / Staff cost
8-12% for grocery and big-box, 12-18% for specialty retail, and 25-35% for service-intensive formats such as beauty or optical.
Because retail teams are heavily part-time. Headcount overstates the labour base and makes productivity look worse than it is.