Same-Store Sales

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DEFINITION of 'Same-Store Sales'

A statistic used in retail industry analysis that compares the sales of stores that have been open for at least one year. Same-store sales compare revenues earned by a retail chain's established outlets over a certain time period, such as a fiscal quarter or on a seasonal basis, for the current period and the same period in the past (usually the same period of the previous year.) Same-store sales allow investors to determine what portion of new sales has come from sales growth and what portion can be attributed to the opening of new stores.


Same-store sales are also called "S.S.S.," "comps," "comparable store sales," "identical store sales" or "like-store sales."

BREAKING DOWN 'Same-Store Sales'

Same-store sales figures are expressed as a percentage. For example, retail chain ABC may report same-store sales growth of 4.5% for the current fiscal quarter over last year's. Same-store analysis is important because although new stores may represent growth for a retail chain, a saturation point - where future sales growth is determined by same store sales growth - may eventually occur. Same-store sales are typically published by retail companies on a monthly basis. The figures help analysts differentiate between revenue growth that comes from any new outlets and growth that is a result of improved management and operations at the existing outlets.

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RELATED FAQS
  1. How do investors interpret the same store sales ratio when analyzing food and beverage ...

    When an investor interprets the same-store sales ratio in analyzing food and beverage stocks, he looks at the monthly same-store ... Read Full Answer >>
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    Some of the most commonly used metrics to evaluate companies in the retail sector include the price/earnings to growth (PEG) ... Read Full Answer >>
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    Along with traditional equity valuation metrics such as the price-to-earnings (P/E) ratio, investors in retail stocks pay ... Read Full Answer >>
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