What are the sale of the same store?
The sale of the same trade is a deadline concerning the comparison of the income of generated trades owned by a given chain that was in operation at least one calendar year. Identifying an increase in income generated by older trades rather than any new places that have opened over the last twelve months, the retailer may gain a better understanding of income and losses. These data, which are sometimes referred to as a comparable sales of trade or the same sales of stores, can be used to help the retail chain to understand when the saturation of a particular market has been reached and avoids opening other stores in this market.
The process of selling the same trade requires that sales data for all recently open places be excluded from comparison. This is because newer shops build a stable clientele that can be partially consisting of former patronsolder shops. One of the objectives of comparable sales of trade is to find out what effect, if at all, the opening of a new store in the relatively close proximity of older stores had the income generated by these established places. If the sale data suggests that older trades have not seen a significant reduction in income, compared to what they generated during the previous accounting period, then enterprises know that the market has not reached a saturated point. This means that the retail chain may consider opening another place in the area if the research suggests that another new location will not have an adverse impact on older stores.
businesses can compare the sale of the same store per month or seasonal foundation. In each scenario, sales data are compared with the sale data for the same period during the previous year. For example, a retailer may focus on determining whether there has been a loss or sales profit in older stores during the recently completed Christmas withEzones over sale generated during the previous Christmas season. If the revenue was at least as high as in the previous season, then the retailer knows that the new shops open in the meantime did not have a negative impact on the performance of older stores and the company will benefit from the presence of multiple stores in this area.
The sale of the same trade can also indicate shifts in demography in a given sales region. When older stores lose income when newer shops are open across the city, this may be indicated by the gradual trend of consumers who leave the older part of the city to move to a newer section. If this type of trend is manifested, there is a great chance that the retail chain will build a new place around the city and close the older store once the newer facility is open for business.