Final answer:
Retailers focus on the productivity of space, labor, and merchandise when setting productivity objectives. The correct option is D.
Step-by-step explanation:
When a retailer sets productivity objectives, they are focusing on the efficiency of using their resources to generate sales and ultimately profits. These objectives typically measure the productivity of three key resources: space, labor, and merchandise. Retailers aim to maximize the return on each of these resources to achieve the best possible financial outcomes.
Optimizing space productivity involves effectively utilizing the selling and storage areas to maximize sales per square foot. Labor productivity refers to the amount of sales generated per employee or labor hour, ensuring that the workforce is efficiently contributing to the business's profitability. Finally, merchandise productivity deals with the turnover rate and profit margin on goods sold, indicating how well inventory is managed and how profitably it is converted into sales.
It is also useful to consult data sources such as the "Productivity and Costs" link for comprehensive data across various sectors, to benchmark performance and set realistic productivity targets. Retailers can measure productivity using different metrics, such as sales per square foot for space, sales per hour for labor, and gross margin return on inventory for merchandise.