Retail and consumer goods
Rate of sale
How many units a product sells per store per week, in the stores that stock it.
Last reviewedWhat does Rate of sale mean?
Rate of sale is the average sales of a product per stocking store per period, usually units per store per week. It shows how well a product sells once it is on the shelf, separately from how many stores carry it. Sales = number of stores stocking x rate of sale x weeks. Example: a juice in 2,000 stores selling 15 units per store per week sells 30,000 units a week. A brand with a strong rate of sale can argue for more stores; one with a weak rate of sale risks being delisted by retailers.
Where does it come up in case interview prep?
Related terms
- Numeric distributionThe share of all relevant stores that stock a product.
- Weighted distributionThe share of total category sales made by the stores that stock a product.
- Sell-through rateThe share of stock received that has been sold within a period.
- Like-for-like sales (LFL)Sales growth from stores open in both periods, leaving out new and closed stores.
- Sales per square metreStore sales divided by selling space: how productive the space is.
- Shrink (shrinkage)Inventory lost to theft, damage, errors or spoilage.
- MarkdownA lasting price cut to clear stock that is not selling.
- Private label (own brand)Products sold under the retailer's own brand rather than a manufacturer's.