Same-store sales Metric- EASY EXPLAINATION

In this video, you will learn about a metric known as same-store sales.

#samestoresales #sales #wallstreetmojo #management #salesmetric

Chapters:
00:00 – Introduction
00:31 – What is same-store sales?
01:37 – Same store-sales formula
02:01 – Example
02:38 – Importance of same-store sales
03:31 – Conclusion

What is same-store sales?
Same-store sales is a metric used by managers in which they compare current year sales to that of the previous year to know the change in sales.

Businesses use this metric to know whether the store has made progress in terms of sales or whether the sales have fallen.

(Explained in detail in the video)

Same-store sales formula
Here's what the equation would look like:
Same-store sales = [(Current Year Sales/Previous Year Sales)-1]*100

Example
We have taken an example in the video where we compare a store's sales in two years and calculate the change in sales using the formula.


Importance of same-store sales
The metric can let managers know if the store did well or the sales fell. Then, they can use this to figure out the reasons for the same.

The management can use it to decide if they need to shut down a store if it constantly has a sales slump. They may also use the metric to determine whether to open new stores if the current store cannot handle the demand.

(Explained in detail in the video)

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