How large does a retail space really need to be? | maison.work

Choosing the right retail space is a strategic decision that has long-term effects on your business success. Too small and you cannot present your range optimally, too large and you pay unnecessarily high rents while space productivity decreases. Especially in Switzerland, where commercial rents in urban locations are among the highest in Europe, precise planning pays off.

Before you decide on a retail space, you should understand exactly what counts as sales area and how it is calculated. After all, not every square meter of your rental property contributes directly to sales – and yet you pay rent for it. Correct sizing takes into account your business concept, your target group, and your operational requirements.

What counts as retail space?

The retail space (sales area) comprises all areas used for the presentation and direct sale of goods and accessible to customers. It is therefore that part of your shop where customers can move around and select products. The retail space typically includes the actual sales room with shelves, displays, and product presentations, checkout areas, changing rooms in clothing stores, as well as aisles between product displays.

Not counted as retail space, however, are all rooms and areas that are not accessible to customers or do not serve direct sales purposes. These include storage rooms, offices, staff rooms, sanitary facilities, stairs, elevators, and technical rooms. These areas are referred to as ancillary areas. Shop windows are also generally not counted as pure retail space, although they have an important function for product presentation.

In Switzerland, there is no uniform legal definition of retail space. The calculation is usually based on the standards of the Swiss Society of Engineers and Architects (SIA), in particular the SIA 416 standard. This distinguishes between different area categories and offers a standardized basis for area calculation. When renting a property, it is important to clearly define in the lease agreement which areas are specified exactly and how they were measured.

A common point of contention between landlords and tenants is the question of whether certain border areas belong to the retail space or not. These include, for example, entrance areas, window displays, or niches. Here, it is advisable to clarify exactly during the viewing which square meters are calculated and how. The gross floor area specified in the lease is usually significantly larger than the actually usable retail space.

How do you calculate retail space?

The calculation of the retail space in Switzerland is usually carried out according to the SIA standard 416, which distinguishes between different types of areas. For the retail space, 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 deducted to determine the effective retail space.

The calculation takes place in several steps. First, measure the gross floor area (BGF), i.e., the entire built-up area including external walls. Structural areas such as walls, columns, and shafts are deducted from this 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 retail space available for product presentation and customer traffic.

A practical example: A retail space has a gross floor area of 150 square meters according to the lease. After deducting wall thicknesses and structural elements, about 140 square meters of net floor area remain. Of this, 20 square meters are for storage, 5 square meters for sanitary facilities, and 3 square meters for a small office area. The actual retail space is therefore 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 roof pitches, often only the area with a minimum height of 1.5 to 2 meters is fully counted. Areas with lower height are either only partially or not considered at all. These details can have significant effects on the effectively usable retail space.

For a professional calculation, it is advisable to consult an architect or surveying specialist, especially when it comes to larger areas or complex floor plans. The investment is worthwhile, as you ensure that the areas stated in the lease are correct and you are not paying for square meters that you cannot use.

What size does your business really need?

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

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

The type of product presentation also plays an important role. Textiles require more space for presentation and fitting rooms, while electronics or cosmetics often allow for a more compact presentation. also consider whether you need consultation areas, seating, or special presentation surfaces. A furniture store, for example, needs room for sample rooms, while a bookstore primarily needs shelf space.

Factors in size planning

When determining the optimal retail space size, you should include the following factors:

• Assortment width and depth: The more different items you carry, the more space you need
• Customer frequency: High-traffic locations require sufficient room for movement
• Storage needs: Can you use an external warehouse or do you need storage space in the shop premises?
• Budget: Rental costs must be in a healthy relationship to the expected turnover
• Location: In a prime location (A-location), you can achieve more with a smaller area than in peripheral locations

As a rule of thumb: The rent should not amount to more than 8 to 12 percent of the planned turnover. So if you expect an annual turnover of 500,000 Francs, the annual rent including additional costs should amount to a maximum of 40,000 to 60,000 Francs. From this, the maximum number of square meters can be derived that you can afford at the respective square meter prices at the desired location.

Practical tips for optimal space utilization

Even with limited retail space, there are numerous possibilities to use the available room optimally. Thoughtful space planning can considerably increase the effective retail space without you having to pay more rent. The key lies in the intelligent design and use of every square meter.

Use 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, ensure that the areas remain easily accessible and visible. A clear product 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 retail space.

You should consciously design the route guidance and customer flows. A clever placement of the checkout area, entrance zones, and attractive product groups guides customers through the entire sales room. The classic IKEA tour is an example of how controlled route guidance leads to higher turnover. Even in smaller shops, you can ensure that customers see as many products as possible through skillful arrangement of product groups.

Do not underestimate the importance of open spaces. Overloaded sales rooms appear cramped and confusing. 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 retail space should be planned as circulation area.

Conclusion: The right retail space for your success

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

Before you sign a lease, you should understand exactly which areas are specified in the contract and how they were calculated. The difference between gross floor area and actually usable retail space can be significant. A professional measurement according to SIA standards gives you security and prevents later disappointments. Calculate realistically 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 shop premises in a peripheral location. With clever space planning, flexible furnishing concepts, and thoughtful product presentation, you get the maximum out of your retail space. At maison.work you find a large selection of retail spaces in various sizes and locations – so you can find the space that perfectly fits your concept.