How large does a retail space really need to be?

Choosing the right sales area is a strategic decision that has long-term effects on your business success. Too small, and you cannot optimally present your product range; too large, and you pay unnecessarily high rents with simultaneously decreasing space productivity. Especially in Switzerland, where commercial rents in urban areas are among the highest in Europe, precise planning is worthwhile.

Before you decide on a retail space, you should understand exactly what counts as sales area and how it is calculated. Not every square meter of your rental property directly contributes to sales – and yet you pay rent for it. The correct dimensioning considers your business concept, your target audience, and your operational requirements.

What Counts as Sales Area?

The sales area includes all areas used for the presentation and direct sale of goods and accessible to customers. It is therefore that part of your retail store where customers can move around and select products. The sales area typically includes the actual sales room with shelves, displays, and product presentations, cash register areas, fitting rooms in clothing stores, and passageways between merchandise displays.

In contrast, rooms and areas that are not accessible to customers or do not directly serve sales are not considered part of the sales area. These include storage rooms, offices, staff rooms, sanitary facilities, stairs, elevators, and technical rooms. These areas are referred to as ancillary spaces. Shop windows are also generally not counted as pure sales area, although they have an important function for merchandise presentation.

In Switzerland, there is no uniform legal definition of sales area. The calculation usually follows the standards of the Swiss Society of Engineers and Architects (SIA), particularly SIA Norm 416. This norm distinguishes between various space categories and provides a standardized basis for space calculation. When renting a property, it is important to clearly define in the lease agreement which areas are specified and how they were measured.

A common point of contention between landlords and tenants is whether certain boundary areas belong to the sales area or not. These include, for example, entrance areas, window displays, or alcoves. It is advisable to clarify precisely during the viewing how many square meters are calculated and in what way. The gross floor area specified in the lease agreement is usually significantly larger than the actually usable sales area.

How to Calculate the Sales Area?

The calculation of the sales area in Switzerland usually follows SIA Norm 416, which distinguishes between various types of areas. For the sales area, the net floor area (NGF) is primarily relevant, which includes all usable floor areas within a building. From this, the non-sales-relevant areas are then subtracted to determine the effective sales area.

The calculation is carried out in several steps. First, the gross floor area (GFA) is measured, which is the entire built-up area including external walls. From this, the construction areas such as walls, columns, and shafts are deducted to obtain the net floor area. Subsequently, all ancillary areas such as storage, offices, and sanitary facilities are subtracted from this NGF. The result is the pure sales area, which is available for merchandise presentation and customer traffic.

A practical example: A retail space has a gross floor area of 150 square meters according to the lease agreement. After deducting wall thicknesses and structural elements, approximately 140 square meters of net floor area remain. Of this, 20 square meters are allocated to storage, 5 square meters to sanitary facilities, and 3 square meters to a small office area. The actual sales area is thus 112 square meters – significantly less than the originally stated gross floor area.

When measuring, you should ensure that the areas are recorded correctly. Measurements are usually taken from the top edge of the finished floor to the inside of the walls. In the case of sloping walls or pitched roofs, often only the area with a minimum height of 1.5 to 2 meters is fully accounted for. Areas with less height are either only partially or not at all considered. These details can have significant effects on the effectively usable sales area.

For a professional calculation, it is advisable to consult an architect or surveying specialist, especially when dealing with larger areas or complex floor plans. The investment is worthwhile, as it ensures that the areas specified in the lease agreement are correct and that you do not pay for square meters you cannot use.

What Size Does Your Business Really Need?

The optimal size of your sales area largely depends on your business model, industry, and product range. There is no universal answer, but some proven benchmarks can serve as guidance. A small concept store or a specialized retail shop often manages with 40 to 80 square meters, while an extensive assortment business might require 150 to 300 square meters or more.

Crucial is space productivity, i.e., sales per square meter of sales area. This key figure varies greatly depending on the industry. In food retail, it typically ranges from CHF 5,000 to 15,000 per square meter per year, while in furniture retail, it can be significantly lower. High-priced assortments such as jewelry or watches often achieve very high space productivities on a small area. When planning, you should analyze what space productivity is common in your industry and what sales you can realistically expect.

The type of merchandise presentation also plays an important role. Textiles require more space for presentation and fitting rooms, while for electronics or cosmetics, a more compact presentation is often possible. Also consider whether you need consultation areas, seating, or special presentation spaces. A furniture store, for example, needs space for display rooms, whereas a bookstore primarily needs shelf space.

Factors in Size Planning

When determining the optimal sales area size, you should include the following factors:

• Product range breadth and depth: The more different items you carry, the more space you need
• Customer frequency: High-traffic locations require sufficient movement space
• Storage requirements: Can you use external storage or do you need storage space within the retail premises?
• Budget: Rental costs must be in a healthy relationship to expected sales
• Location: In a prime location, you can achieve more with less space than in peripheral locations

As a rule of thumb: rent should not exceed 8 to 12 percent of the planned turnover. So, if you expect an annual turnover of CHF 500,000, the annual rent including ancillary costs should not exceed CHF 40,000 to 60,000. From this, you can then derive the maximum square footage you can afford at the desired location given the respective square meter prices.

Practical Tips for Optimal Space Utilization

Even with limited sales area, there are numerous ways to optimally utilize the available space. Well-planned spatial design can significantly increase the effective sales area without you having to pay more rent. The key lies in the intelligent design and use of every square meter.

Utilize the vertical dimension: High shelves and wall systems create additional presentation space without occupying floor area. Especially in rooms with high ceilings, you can create additional levels through galleries or mezzanines. However, make sure that these areas remain easily accessible and visible. A clear merchandise presentation is more important than maximum space utilization.

Flexible furnishing elements allow you to adapt the room layout according to the season or assortment. Mobile shelving systems, modular displays, and variable partitions create flexibility. This way, you can create more presentation space for gift items before Christmas or provide more room for outdoor products in summer. This adaptability significantly increases the efficiency of your sales area.

You should consciously design customer flow and pathways. Clever placement of cash register areas, entrance zones, and attractive product groups guides customers through the entire sales floor. The classic IKEA circular route is an example of how guided pathways lead to higher sales. Even in smaller stores, you can ensure that customers see as many products as possible through skillful arrangement of product categories.

Do not underestimate the importance of open spaces. Overloaded sales areas appear cramped and cluttered. Generous aisle widths, an airy entrance area, and sufficient space at the checkouts create a pleasant shopping experience. This is particularly important in high-end segments where the atmosphere is part of the brand positioning. As a guideline, about 30 to 40 percent of your sales area should be planned as traffic area.

Conclusion: The Right Sales Area for Your Success

The optimal size of your sales area is not a fixed number, but the result of a careful analysis of your business model, target audience, and financial capabilities. More space does not automatically mean more success – what is crucial is the efficient use of the available square meters and the creation of an attractive shopping experience.

Before signing a lease agreement, you should clearly understand which areas are specified in the contract and how they were calculated. The difference between gross floor area and actually usable sales area can be considerable. A professional survey according to SIA norms gives you certainty and prevents later disappointments. Realistically calculate what space productivity you can achieve and whether the rent is in a healthy relationship to your expected turnover.

Think long-term: A slightly smaller, but optimally located and efficiently used space is often more successful than a large retail premise in a peripheral location. With clever space planning, flexible furnishing concepts, and well-thought-out merchandise presentation, you get the maximum out of your sales area. On maison.work, you will find a wide selection of retail spaces in various sizes and locations – so you can find the space that perfectly suits your concept.