What do same-store sales mean?
comparable-store sales
Same-store sales are also referred to as comparable-store sales, SSS or identical-store sales. 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 do you calculate same-store sales?
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.
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.
What does LFL mean in retail?
Like for like
Like for like (LFL) growth is a measure of growth in sales, adjusted for new or divested businesses. This is a widely used indicator of retailers’ current trading performance. The adjustment is important in businesses that show a significant dynamic of expansion, disposals or closures.
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 Sssg finance?
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.
What is comparable growth?
Comparable Store Sales Growth means the Company’s or a division’s same store net sales growth for the Performance Period in excess of the prior year.
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.
How do you work out LFL?
Same store sales is calculated by adding the total sales for all of the stores that have been operational last year and subtracting this amount from the total sales of the same stores this year, then dividing the result by the total sales of same stores from last year and multiplying by 100 to get the percentage.
What does LLY mean in retail?
Like-for-like sales are used as an adjusted growth metric that includes revenues generated from stores or products with similar characteristics while omitting any with distinct differences that could skew the numbers.
What is Sssg full form?
Sector Skills Strategy Group (Institute of Explosive Engineers) SSSG. Social Systems Simulation Group. SSSG.
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.
How do I calculate same store sales?
Subtract from the the total revenues during year two any revenue related to stores closed during the past two years. This now gives you total same-store revenues during year one. Subtract from the the total revenues during year two any revenue related to stores opened during the past two years.
What is same store sales data?
Same-store sales. By comparing sales data from existing outlets (that is, by excluding new outlets or outlets which have since closed), the comparison is like-to-like, and avoids comparing data that are fundamentally incomparable. This financial and operational metric is expressed as a percentage.
What is the same store sales growth?
Same-store sales are typically a more accurate measure of a retailer’s success than revenue is. That is because same-store sales growth is typically due to improved operations at existing stores. Revenue growth is sometimes just a product of opening new stores.