What do same-store sales mean?

Same-store sales figures are expressed as a percentage that indicates the relative amount of revenue increase or decrease. For example, a same-store sales figure of 7% indicates that total dollar revenues at a retail chain’s existing locations increased by 7% over the same given time period from the previous year.

How is same-store sales calculated?

Same-Store Sales Formula Total Sales (in the previous year) = Sales recorded in the same period but the previous year for the same outlet and; The percentage change in sales shows the increase or decrease in the total sales recorded by the outlet in the current.

Does same-store sales include online?

(Occasionally retailers will set another timeframe for the same-store sales metric.) It does not include sales at stores open for less than 12 months or those made online. The metric is also known as comparable-store sales or comps.

What is a good same-store sales growth?

A positive (>0%) same-store sales figure is favorable, while a decrease (<0%) in same-store sales is detrimental. A positive same-store sales figure means that the company generated more sales per store compared to last year – an indicator of growing customer demand.

What does the term same store mean?

Same-store sales is a business term that refers to the difference in revenue generated by a retail chain’s existing outlets over a certain period (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year.

How do you grow same store sales?

7 Tips to Increase Same-Store Sales in Retail

1. Run promotions… but be smart about them!
2. Collect customer information and put their data to good use.
3. Invest in your team.
4. Find ways to drive foot traffic.
5. Maximize sales from existing visitors.
6. Make sure your stores are on-trend.
7. Consider budget-friendly payment options.

Why might companies focus on same store sales rather than total sales?

Why might companies focus on same store sales rather than total sales? If a company is growing by opening new stores, then presumably total revenues would be rising. Same-store sales control for this by only looking at revenues of stores open within a specific period.

Why is same store growth important?

Importance of same-store sales Same-store sales is an important metric for evaluating current performance and predicting likely future performance. Investors and retail companies often use same-store sales to best assess performance because it aims to determine what caused changes in sales.

What are same-store sales?

What is ‘Same-Store Sales’. Same-store sales is a financial metric that companies in the retail industry use to evaluate the total dollar amount of sales in the company’s stores that have been operating for a year or more.

Find the net sales figures for each of the years 2018 and 2017.

Subtract any revenue related to stores closed during the past two years from the net sales earned in 2017.

Revenue related to stores closed during the past two years should also be subtracted from 2018 revenue.

What is same store sale?

Same-store sales is a financial metric that companies in the retail industry use to evaluate the total dollar amount of sales in the company’s stores that have been operating for a year or more.

What does same store mean?

Definition of “same-store” – English Dictionary. “same-store” in Business English. › used to compare sales at company’s stores in one period with the same stores in a different period, not including stores that have opened or closed during the period: On a same-store basis, Boots The Chemists increased sales by 5.1%.