Retail
Related Guides

How Same-Store Sales is Calculated

, updated on
Same-store sales is a retail financial metric that compares the gross revenue of stores from one period to the next.

Overview

Same-store sales requires a set of comparable stores in order to compare gross revenue between two months, financial quarters or years. As stores may be continually opening and closing this set of stores can change with time. Typically, stores with less than one year of sales history are excluded. Same-stores sales is expressed as a percentage that indicates the growth or decline in sales.

Calculation

The process of determining a set of comparable stores often requires significant interpretation. The basic calculation for same-store sales is as follows.
same store sales = ((new sales / old sales) - 1) x 100

Example

A retail chain classifies 120 stores as comparable for 2017 and 2016. In Q4 of 2016, the stores have revenue of \$776 million. In Q4 of 2017, the stores have revenue of \$806 million. Same-store sales is calculated as:
same store sales = ((806 / 776) - 1) * 100 = 3.9%
The results indicate that sales were 3.9% higher in comparable stores in Q4 2017 as compared to Q4 2016.

Value

Same-store sales provides a stable view of the performance of a retail business without the noise surrounding the opening and closing of stores. Rapidly opening new stores can simulate growth but such growth is unsustainable if same-store sales experiences a material decline.
 Overview: Retail Metrics Type Retail MetricsSales MetricsMarketing Metrics Definition A financial metric that compares the gross revenue of comparable stores between two periods of time. Also Known As Comparable store salesIdentical store salesComps Related Concepts Retail MetricsSales MetricsMarketing Metrics

Retail

This is the complete list of articles we have written about retail.
Bricks And Clicks
Consumer Staples
Customer Service
Display Window
Flagship
FMCG
Hard Goods
Haute Couture
In-Store Marketing
Local Marketing
Point Of Sale
Pricing Strategy
Promotion
Restaurants
Retail Automation
Retail Examples
Retail Industry
Retail Services
Shops
Showrooms
Softlines
Store Management
Store Operations
More ...

Retail

A list of retail industry business terms.

Bespoke

A term to describe products and services that are commissioned by a customer.

Store Within A Store

An overview of store within a store.

Local Store Marketing

A definition of local store marketing with examples.

Retail

A list of retail types.

Display Window

An overview of display windows as a marketing technique.

Lifestyle Brand

A definition of lifestyle brand with examples.

Showroom

An overview of product showrooms as a marketing strategy.

Retail Automation

The common types of retail automation.

Marketing Metrics

A list of common ways to measure marketing results.

A list of common business metrics.

Data-Driven Marketing

A definition of data-driven marketing with examples.

Customer Loyalty

The common types of loyal customer.

Recency

A definition of recency with examples for sales, marketing and advertising.

Active Users

The common types of active user metric.

Active Customer

An overview of active customers as a marketing metric.

Marketing Benchmarks

The definition of marketing benchmark with examples.

The formula for cost per lead with calculation examples.

Marketing Efficiency

An overview of marketing efficiency with calculation examples.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map