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May 18, 2022

How to Calculate Footfall Rate for a Retail Store: The Ultimate Guide

How to Calculate Footfall Rate for a Retail Store: The Ultimate Guide

Retail space is a valuable commodity. Although the cost of rent may be high, retail stores are still an attractive option for many different businesses and entrepreneurs because they provide exposure to consumers in a convenient location. Whether you’re looking to open your own store or want to know what it takes for another company that already has one established, understanding how the footfall rate is calculated is important.

What Is Footfall Rate? 

Footfall rate is a metric that retail store owners, landlords, and other commercial businesses use to measure the number of shoppers or customers who visit their store during a specific period of time. This metric can be used to compare foot traffic from one day to the next, one week to the next, or one month to the next. It can also be used to compare foot traffic at different times of day, different days of the week, or different times of the year.

What does the Footfall Rate Indicate?

The footfall rate is an important metric because it provides insight into how popular a store is with shoppers or customers. A high footfall rate indicates that a store is doing well and attracting a lot of customers. A low footfall rate, on the other hand, may indicate that a store is struggling to attract customers.

For example, let’s say that a store has a footfall rate of 1,000 customers per day. This means that, on average, 1,000 shoppers or customers visit the store each day. If the footfall rate for the same store drops to 600 customers per day, this may be an indication that the store is struggling to attract customers.

How Is Footfall Rate Calculated? 

There are a few different ways to calculate the footfall rate, but the most common method is to divide the number of shoppers or customers by the store’s hours of operation. For example, if a store is open for 10 hours each day and has a footfall rate of 1,000 customers per day, the store’s footfall rate would be 100 customers per hour.

To calculate the footfall rate for a retail store, you will need to:

  • Determine the number of shoppers or customers who visit the store each day

  • Divide the number of shoppers or customers by the store’s hours of operation

It’s important to note that the footfall rate can vary depending on the time of day, the day of the week, or the time of year. For example, a store’s footfall rate may be higher on weekends than on weekdays. Or, a store’s footfall rate may be higher during the holiday shopping season than at other times of the year.

In addition to calculating the footfall rate, it’s also important to track the number of sales made during a specific period of time. This metric is often referred to as the “conversion rate.” The conversion rate indicates how many shoppers or customers actually make a purchase while they are in the store.

To calculate the conversion rate, you will need to:

  • Determine the number of sales made during a specific period of time

  • Divide the number of sales by the number of shoppers or customers who visit the store during that same period of time

For example, if a store has a footfall rate of 1,000 customers per day and makes 100 sales per day, the store’s conversion rate would be 10%.

The footfall rate and the conversion rate are both important metrics because they provide insight into a store’s performance. 

What is a Good Footfall Rate? 

There is no “right” answer to this question because the footfall rate will vary from one store to the next. A good footfall rate for one store may not be a good footfall rate for another store.

The best way to determine if a store’s footfall rate is good or not is to compare it to the footfall rates of other stores in the same industry. For example, if the average footfall rate for retail stores is 100 customers per hour, and a particular store has a footfall rate of 200 customers per hour, that store’s footfall rate would be considered good.

Why Is Footfall Rate Important? 

Footfall rate is important because it gives store owners, landlords, and other commercial businesses a way to measure a store’s success. In addition, the footfall rate can be used to benchmark a store’s performance against other stores in the same industry.

How Else Can You Use Footfall Rate in Practice? 

In addition to being a measure of a store’s success, the footfall rate can also be used in the following ways:

  • To calculate the store’s conversion rate

  • To benchmark the store’s performance against other stores in the same industry

  • To determine the feasibility of opening a new store

  • To assess the impact of a marketing campaign

  • To evaluate the performance of a store location

What Are The Limitations of Footfall Rate? 

While the footfall rate is a helpful metric, it does have some limitations. First, the footfall rate only measures the number of shoppers or customers who visit a store. It does not take into account the number of sales made. In other words, the footfall rate does not indicate whether or not those shoppers or customers actually make a purchase while they are in the store.

Second, the footfall rate can be affected by a number of factors, such as the time of day, the day of the week, or the time of year. For example, a store’s footfall rate will likely be higher during the holiday shopping season than at other times of the year.

In addition, the footfall rate can be affected by external factors, such as weather conditions or a competitor’s marketing campaign.

Despite these limitations, the footfall rate is still a helpful metric because it provides insight into a store’s performance.

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