Same-Store Sales

Same-Store Sales refers to a metric used to evaluate the performance of retail stores by comparing the Revenue generated by stores that have been open for a specified period, typically a year or more, to the Revenue from the same stores during the previous period. This metric helps analysts and investors gauge the health of a retail business by isolating the impact of new store openings or closures.

For example, if a retail chain has 100 stores, and in 2023, the stores that were open in both 2022 and 2023 generated $10 million, while the same stores generated $9 million in 2022, the same-store sales growth would be 11.1%.

In another case, if a fast-food chain reports a decline in same-store sales from $5 million last year to $4.5 million this year, it indicates a 10% decrease, suggesting potential issues such as increased competition, changing consumer preferences, or economic downturns affecting sales.