Gross Margin Return On Space (GMROS) Calculator Explained:
(a) What is this? Gross Margin Return On Space (GMROS), helps you calculate the space performance for a defined area in the store, usually linear shelf metres/feet.
(b) What does it tell me? The GP$ performance per linear metre/foot of space. Typically this calculator is used to determine the performance of a category.
(c) Why should I use it? Normally this calculator determines category performance. Use it to detemine whether the different activities you undertake (price, promotion, range, service etc.), are effective for the category in this space or not.
(d) Caution: Be consistent with the space measures you use. Because a category has a poor performance does not mean that you should get rid of it, not all categories are good performers. You should understand whether it is improving its performance or not.