What it is
Same-store sales, also known as comparable-store sales, track the revenue generated by retail locations that have been operating for a consistent period, usually at least 12 months. This metric excludes sales from newly opened or recently closed stores. Its purpose is to provide an accurate measure of organic growth, showing how well existing stores are performing without the impact of expansion or contraction.
This metric is particularly important for retail companies and restaurants, frequently discussed during earnings calls. Positive same-store sales growth indicates increasing customer traffic or higher average transaction values at established locations, signaling healthy demand. Conversely, declining same-store sales can point to weakening consumer interest, increased competition, or operational issues within existing stores, often leading to negative market reactions.
Why it matters
Same-store sales show the true health and growth of a retailer's existing business. It's a key indicator of consumer demand and operational success.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice