The short answer: compare branches fairly by looking beyond sales to profit, margin and efficiency per branch — and by accounting for differences in size, rent and staffing. A branch with high sales but thin margin and high costs can earn less than a smaller, leaner one.
Why sales alone mislead
Turnover is the number everyone quotes, but it hides the truth. A branch can top the sales chart while making little profit — heavy discounting, high rent, or a low-margin product mix. Judge on sales alone and you reward the wrong behaviour.
The metrics that tell the truth
- Net profit per branch — the bottom line for each location.
- Gross margin — is each branch pricing and buying well? See margin.
- Sales per square metre or per staff member — efficiency, not just size.
- Expense ratio — costs as a share of sales.
- Stock turnover — is capital working, or sitting idle? See turnover.
Compare like with like
A flagship store and a small outlet aren’t directly comparable on raw numbers. Use ratios (margin, sales per staff, expense ratio) that adjust for size, and consider each branch’s context — location, rent, maturity — before judging.
Turn comparison into action
- Find your genuinely most profitable branch — and learn what it does well.
- Spot the busy-but-unprofitable branch and fix the cause (margin, costs, discounts).
- Set fair, ratio-based targets rather than raw sales goals.
See every branch clearly
RushFlow reports profit, margin and key ratios per branch from one system — so you compare fairly and act on the truth, not the turnover. See the live demo, or read managing multiple branches.