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Same-Store-Sales

Same-store sales means the revenue generated by a retail chain’s existing branches over a specific period, usually a fiscal quarter or shopping season. This revenue is compared to the performance of the branches during an identical period in the past years. Comparing the sales information of existing branches, the comparison is like-to-like and is fundamentally valid. New branches are, therefore, excluded from the comparison. Same-store sales are also called as comparable store sales or like-store sales.

Sports shop

Sports shop

It allows rapidly expanding chains to determine whether revenue growth is derived from new outlets or from improvements in existing ones. Any growth in same-store sales signals that the retailer’s concept is effective and its merchandise is fresh. Hence, same-store sales is considered the most important measurement in retail sales analysis. Consequently, if it declines, it signals that the retailer may be having intensified competition, poor merchandise mix, and other factors limiting customer traffic.

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