What Is Same-Store Sales

moneySame-store sales or like-for-like sales compares revenues for stores that have been opened for one year. It is a very useful way to compare organic sales growth in the retailer sector. After all, any retailer can boost sales by simply opening more outlets. But like-for-like sales will strip out new store openings to provide a better picture of a retailer’s underlying organic demand.

Usually, like-for-like sales figures are expressed in percentage terms. So an 8% like-for-like sales growth would imply that a retailer’s outlets that have been open for at least one year grew sales over the same period at 8% over the last twelve month.

A slip in like-for-like sales could mean a number of things. Declining or slowing like-for-like sales could be caused by competition from rivals or changes in consumer sentiment. It might even be caused by cannibalisation, whereby a retailer has opened new outlets that have taken sales from its own existing outlets.

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