Like-for-Like Sales: Definition and Practical Guide

What it is

Like-for-like sales (also called comparable-store sales, comps, same-store sales, or identical-store sales) measure revenue growth from a consistent set of products, stores, or business units over time. The goal is to isolate organic performance by excluding changes that would distort comparisons, such as newly opened locations, recent acquisitions, or closed outlets.

Key takeaways

• Provides a clearer view of organic growth by comparing only comparable operations or products.
• Helps distinguish growth driven by existing operations from growth driven by new openings or acquisitions.
• Useful for identifying strong or weak products, regions, or store formats.
• There is no single industry-standard method for calculating it; treat it as one of multiple performance metrics.

How like-for-like sales are typically calculated

• Define the comparable set (e.g., stores open for at least 12 months, specific product lines, or consistent geographic segments).
• Compare revenue for that set across equivalent periods (year-over-year, quarter-over-quarter, or rolling periods).
• Exclude items that would distort comparability (new or recently closed locations, one-off events, major acquisitions).
• Reporters may further adjust for currency effects, store remodels, or other structural changes—check company disclosures for their specific method.

Why it matters

• Reveals whether established operations are improving sales independent of expansion.
• Helps assess the success of promotions, merchandising, pricing, and operational changes at existing units.
• Detects cannibalization (new stores drawing sales away from existing locations).
• Informs decisions about opening new locations, reallocating inventory, or changing marketing emphasis.

Strategies to improve like-for-like sales

• Promotions and targeted sales events—planned to balance traffic uplift with margin protection.
• Customer data and loyalty programs—to personalize offers, increase retention, and drive repeat purchases.
• Merchandise and assortment optimization—focus on best-selling items and localize assortments by store/region.
• Store experience and operations—improve service speed, layout, availability, and in-store marketing.
• Pricing strategies and cross-selling—encourage higher basket size without eroding perceived value.
• Local and digital marketing—use local promotions and omnichannel tactics to drive visits and conversions.

Important considerations and limitations

• Calculations vary across companies; review each company’s definition and adjustments before comparing figures.
• Currency fluctuations can materially affect reported comparable sales for multinational companies; many firms report both reported and constant‑currency results.
• Seasonal patterns and one-time events can distort short‑term comparisons—use multi-period views where possible.
• Like-for-like sales should be used alongside other metrics (traffic, average transaction value, margins, store productivity) to form a complete picture.

Real-world illustration

A retailer can report strong total revenue growth while its like-for-like sales rise only modestly if much of the revenue increase comes from newly opened stores. Conversely, strong comparable-store growth with modest overall expansion suggests existing locations are driving the company’s health.

Conclusion

Like-for-like sales are a valuable tool for isolating organic performance of stores or products. When calculated and interpreted carefully—alongside traffic, margin, and unit productivity metrics—they help managers and investors understand true operational momentum and make better-informed decisions about promotions, expansion, and investment.