same-store sales = comps

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same-store sales = comps

Post by dalehileman » Sun May 01, 2005 4:51 pm

Sales at stores opened at least a year [some sources say 2 years], known as same-store sales, are considered the best indicator of a retailer's strength--AP

Although these terms are well-known and much used, I wasn't familiar with either of them. Does anyone know how long they've been around? Thanks guys
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same-store sales = comps

Post by Ken Greenwald » Sun May 01, 2005 10:24 pm

Dale, To clarify this issue just a bit:

SAME-STORE SALES refers to sales dollars from a particular chain of stores (e.g. Wal-Mart, Sears, etc.) or from an entire industry (e.g. groceries, department stores, pharmacies, restaurants, etc.) but includes only those stores that have been open for more than a year. The reason for the ‘more than a year’ requirement in this particular industry measurement is so that data has been accumulated for a direct comparison (apples-to-apples) with an earlier time-frame and so store closing and chain expansions will not enter into the mix. Including the profits (or loses) of 20 newly opened stores into the total, for example, for a given period would provide a false impression of how existing stores are actually doing. Also known as COMP STORE SALES, COMPARABLE STORE SALES, LIKE-STORE SALES.

In doing a search, I couldn’t find this term used earlier than 1994, but that doesn’t mean it wasn’t.
<1994 “Economists concerned with enrollment trends, however, often seek information on ‘SAME STORE SALES,’ because they wish to compare their institution’s experience with comparable institutions,”—‘Journal of Economic Education,’ Vol. 25, No. 3 (Summer), page 282>

<1996 “ COMPANY NEWS;COMPUSA REPORTS 10% INCREASE IN SAME-STORE SALES”—N.Y. Times, 4 January>

<1997 “Salomon Brothers estimates that SAME-STORE SALES fell 4% in May. McDonald's is equipping stores with explanatory signs and promising that consumers will catch on [[ to the ‘my size’ meal deal ]]. A reported $66 million in advertising may help.”—‘Time Magazine’>

<2003 “Positive SAME-STORE SALES fueled fifth gain in the last six months.”—‘National Restaurant Association,’ 30 September>
Ken G – May 1, 2005
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same-store sales = comps

Post by dalehileman » Sun May 01, 2005 11:39 pm

Ken, thank you. Has anyone heard it used even earlier
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same-store sales = comps

Post by Bobinwales » Mon May 02, 2005 6:44 pm

I'm not going to be much help here Dale, I have never heard of the expression, and frankly I'm not absolutely sure I understand it either.
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Signature: All those years gone to waist!
Bob in Wales

same-store sales = comps

Post by Erik_Kowal » Tue May 03, 2005 3:14 am

What Ken is describing is simply a retail accounting method that excludes factors that can be predicted to produce anomalous revenue results; one such is the new store that will take some time to generate sales momentum, and which is therefore not included in the calculations. The financial results obtained in this way should accordingly give a better picture of the underlying sales trend in the core operation, unskewed by misleading data produced by outlets whose circumstances are not typical for that retailer as a whole.
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same-store sales = comps

Post by Edwin Ashworth » Sat May 07, 2005 1:31 pm

I'll buy that.
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