Same-store sales: Difference between revisions
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'''Same Store Sales''' is a [[business]] term which refers to the [[revenue]] generated by one of a retail chain's specific outlets during a certain period of time (often a [[quarter]] or a particular shopping season), compared to an identical period in the past, usually in the previous year. | |||
By comparing how well a particular outlet performs during a particular week compared to that same week in the previous year, business trends can be measured more accurately. Seasonal and geographical variations are removed from the measurement: instead of collecting an average over spans of time and location, annual changes in a specific store's performance are revealed. | Same Store Sales are also known as '''Comparable Store Sales''' or '''Like-Store Sales'''. | ||
For example, a retail chain's finding that its same store sales at location '''A''' for the week-long shopping rush before Christmas are greater than those at location '''B''' is a useful piece of data. That data would have been less useful if only chain-wide sales for that week were known (with all stores averaged together), or if only year-long sales were known for that particular store. | By comparing how well a particular outlet performs during a particular week compared to that same week in the previous year, business trends can be measured more accurately. Seasonal and geographical variations are removed from the measurement: instead of collecting an average over spans of time and location, annual changes in a specific store's performance are revealed. | ||
For example, a retail chain's finding that its same store sales at location '''A''' for the week-long shopping rush before Christmas are greater than those at location '''B''' is a useful piece of data. That data would have been less useful if only chain-wide sales for that week were known (with all stores averaged together), or if only year-long sales were known for that particular store. | |||
==External link== | |||
* [http://www.investopedia.com/terms/s/samestoresales.asp Investopedia] | |||
[[Category:Distribution, retailing, and wholesaling]] | |||
Revision as of 11:23, 31 January 2007
Same Store Sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year.
Same Store Sales are also known as Comparable Store Sales or Like-Store Sales.
By comparing how well a particular outlet performs during a particular week compared to that same week in the previous year, business trends can be measured more accurately. Seasonal and geographical variations are removed from the measurement: instead of collecting an average over spans of time and location, annual changes in a specific store's performance are revealed.
For example, a retail chain's finding that its same store sales at location A for the week-long shopping rush before Christmas are greater than those at location B is a useful piece of data. That data would have been less useful if only chain-wide sales for that week were known (with all stores averaged together), or if only year-long sales were known for that particular store.