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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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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.