Our proprietary operating platform is the foundation for our managed marketplace and consists of distributed processing infrastructure, proprietary software and systems and data science expertise. With ThredUp’s Resale-as-a-Service, some of the world’s leading brands and retailers are leveraging our platform to deliver customizable, scalable resale experiences to their customers. ThredUp has processed over 172 million unique secondhand items from 55,000 brands across 100 categories. By extending the life cycle of clothing, ThredUp is changing the way consumers shop and ushering in a more sustainable future for the fashion industry. RBI’s keystone U.S. brands, Popeyes and Burger King, both saw relatively strong same-store sales growth in 2023 that evaporated in 2024. An insufficient focus on value drove Popeyes’ sales drop, and Burger King is looking to an aggressive remodeling schedule to generate long-awaited sales lifts at many stores.
Same-store sales figures are important points of analysis for the management of a retail chain and for investors evaluating the chain’s current and likely future performance. Market analysts frequently use same-store sales to determine the effectiveness of the management of a retail chain in producing revenue growth from existing assets. For chains that are growing quickly and opening new outlets, same-store sales figures allow analysts to differentiate between revenue growth that comes from new stores and growth from improved operations at existing outlets. Comparable store sales are most commonly used to compare the most recent year’s holiday shopping season to the previous year’s. It can also be used to compare this week’s, month’s, quarter’s, or year’s sales to last week’s, month’s, quarter’s, or year’s sales.
All About Same-Store Sales Definition, Formula, and Importance
39% of younger generation shoppers have made a secondhand apparel purchase on a social commerce platform in the last 12 months. 48% of consumers say personalization, improved search, and discovery make shopping secondhand apparel as easy as shopping new. Papa Johns sees its core pizzas as the key weapon in its arsenal and is looking to make more of them. CEO Todd Penegor believes a greater emphasis on core menu items and core markets will help, and aims to turn existing market into fortresses from which it can move into adjacent territories. McDonald’s comparable store sales saw comps slip in Q2 2024, then turn positive after strong value messaging, though that gain was undone by an E.
GlobalData’s assessment of the secondhand market is determined through consumer surveys, retailer tracking, official public data, data sharing, store observation, and secondary sources. These inputs are used by analysts to model and calculate market sizes, channel sizes, and market shares. Further, for the purpose of this report, GlobalData conducted a January-February 2025 survey of 3,034 American adults over 18, asking specific questions about their behaviors and preferences for secondhand. GlobalData also surveyed the top 50 U.S. fashion retailers and brands from January-February 2025 to gather their opinions on resale. In addition, ThredUp’s Resale Report also leverages data from internal ThredUp customer and brand performance data.
- The importance of same store sales (comps) is that it gives us the real growth picture of the retail business.
- Ollie’s also noted the recent acquisition of 40 Big Lots stores “securing the path to our accelerated growth target of 75 stores for fiscal 2025,” up from 50 last year.
- It helps to evaluate the fluctuation frequency and derive the stability in the business of the concerned unit or outlet.
- It’s crucial to ensure that the stores included in the calculation have been operational for at least one year to eliminate the influence of new openings or closures.
- You can also create a detailed report by store, region, or product category for more granular insights.
The company has had long-festering problems with brand positioning, and CEO Brian Niccol’s Back to Starbucks plan aims to return the chain to its coffeehouse roots. That’s in line with findings from e-commerce analysis firm Brick Meets Click, which has reported for months that mass retailers led by Walmart are dominating the digital grocery space. While the company is tending to the needs of its new stores and spending resources to publicize and have promotional events, it has to take care not to siphon resources away from its existing locations.
Number Sense: Kroger’s e-commerce growth is a complicated story
- For instance, the holiday season typically brings a surge in sales for many retailers, while the post-holiday period may see a decline.
- The company has seen digital sales growth of 11% during each of its past three quarters even as it has been consistently unable to bring its comps, excluding fuel sales, much above 2%.
- Understanding these patterns allows businesses to plan inventory and staffing levels more effectively, ensuring they can meet demand without overextending resources.
- Several elements can significantly impact same-store sales, ranging from external economic conditions to internal operational efficiencies.
Denny’s managed to post same-store sales growth last quarter, though it was a modest 1.1% gain. The diner chain is still challenged by low store volumes, prompting closures and remodels that are lifting traffic and sales. Olive Garden is fighting sluggish performance by improving speed of service and dining room ambiance, a playbook intended to challenge fast casual brands.
Comparable Store Sales
Kroger executives have pointed to the company’s strong digital sales as a linchpin in its overall performance. Foley added that the retailer recorded the best digital profits it has ever seen during its latest quarter, noting that Kroger saw improvements in its delivery and pickup operations. If there’s a long pattern of decline in same-store sales over a period of several quarters or even years, this may indicate a company has run out of room to expand despite opening new stores. While a large chain retailer wants all its stores to perform as well as possible, existing stores may be neglected or even cannibalized by new stores. ThredUp’s annual Resale Report contains research and data from GlobalData, a third-party retail analytics firm.
The Financial Modeling Certification
Comparable store sales not only provide a picture of how specific locations are performing, they can also tell a story about how a retailer is performing as a whole. A negative number shows declining same-store sales, while a positive number shows increasing same-store sales. Negative or positive same-store sales might be due to increasing or falling prices or a change in the number of customers who frequent the stores. Investors and analysts investigating a retail company’s financial statements depend on comparable store sales to give an image of how laid out stores have performed over the long run relative to the performance of new stores.
To comprehend this figure, an analyst will compare it to sales created over the previous quarter of the same accounting year or a previous accounting year. Machine learning algorithms further enhance predictive capabilities by continuously learning from new data. These algorithms can identify complex patterns and correlations that might be missed by traditional analysis methods.
Looking at the figures from the past year, the powerful role e-commerce is playing in driving Kroger’s results forward is even more stark. The company has seen digital sales growth of 11% during each of its past three quarters even as it has been consistently unable to bring its comps, excluding fuel sales, much above 2%. Comparable store sales, or same-store sales, are a measurement of productivity in revenue used to compare sales of retail stores that have been open for a year or more.
Calculation Formula
Historical sales data allows retailers to compare this year’s sales in their store to the same period last year. By analyzing customer reviews, social media posts, and other forms of unstructured data, businesses can gauge public sentiment towards their products and services. For instance, if sentiment analysis reveals a growing dissatisfaction with a particular product, companies can investigate the issue and take corrective actions before it significantly impacts sales. After you put the sales data for each store in excel, you will then create a column for “Growth“. This one will measure the total revenue growth and will include all stores from this period (month, quarter, year..etc) vs. all stores from last period. To enhance your business’s operational performance and gain deeper insights into retail execution, consider exploring ParallelDots’ AI-driven solutions such as ShelfWatch, Saarthi, and SmartGaze.
This method utilizes the equivalent figures that are comparable to evaluate the percentage of change and the performance of a part, a store, or an outlet of an organization. In the above example, we can evaluate that the figures of the same outlet have been compared with the figures of the same period in both the fiscal years, which makes it more favorable an equivalent comparison. The method utilizes the figure for sales of a company’s already existing store or unit or outlet for the same period in two different fiscal years.
This timeframe ensures that the data reflects genuine performance changes rather than fluctuations caused by new openings or closures. Additionally, same-store sales figures can be helpful to retail chain management in making future decisions regarding existing stores and new locations. Increases or decreases in same-store sales commonly result from either price changes, changes in a store’s number of customers or changes in the number of items the average customer purchases. Company management often drills down into same-store sales figures to determine the exact cause of the change in revenues, which can be helpful to the company in making decisions. For example, a decline in sales revenues might result from a new or existing competitor offering lower prices on key items that the company’s stores sell.