A2 Retail Size
Measuring the size of a retailer gives valuable insights into its performance, stability and position in the market. A range of metrics can be used to measure the scale and draw comparisons with its earlier position and those of competitors.
Metrics include number of employees, sales area, number of branches, turnover, type of activity and product range.
Number of Employees
This metric measures the number of people who work for a retailer. It reflects the scale of operations as larger retailers generally have more employees.
Small: A local boutique might have 5-10 employees
Medium: A regional chain like Aldi might have around 40,000 employees in the UK
Large: Tesco, one of the UK's largest retailers, employs over 360,000 people worldwide
Sales area
This metric, often measured in square feet, indicates the physical size of retail spaces.
Small: A corner shop might have 500-1,000 square feet of sales area
Medium: A typical supermarket might have 40,000-60,000 square feet
Large: Walmart Supercenters average around 178,000 square feet
Number of Branches
This metric shows the geographical reach and scale of a retailer.
Small: An independent retailer might have 1-3 locations
Medium: Waterstones, a UK bookstore chain, has around 280 stores
Large: Tesco operates over 4,000 stores in the UK alone
Turnover (sales revenue)
This metric directly measures the money received from sales of goods and services.
Small: A local shop might have annual sales of £100,000-£500,000
Medium: Pets at Home, a UK pet supplies retailer, had annual revenue of £1.3 billion in 2022
Large: Tesco reported annual group sales of £65.8 billion in 2022/23
Product Range
The breadth and depth of products offered can indicate a retailer's size and complexity.
Small: A speciality store might carry 1,000-5,000 different product types.
Medium: A typical supermarket might stock 30,000-50,000 different product types.
Large: Walmart Supercenters can carry over 100,000 different product types.
Type of Activity
While not a numerical metric, this categorises retailers by their primary business focus. This allows for comparisons within specific markets.
For example
grocery
apparel
electronics