Comments on: Understanding Same Store Sales http://www.myfindependenceday.com/understanding-same-store-sales Personal Finance Advice for 30 Somethings and Beyond Sun, 18 Sep 2011 00:21:40 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: mfd http://www.myfindependenceday.com/understanding-same-store-sales#comment-1180 mfd Mon, 24 Aug 2009 17:16:34 +0000 http://www.myfindependenceday.com/?p=1808#comment-1180 @tom - I totally agree and that's what I was trying to get at with the example. There was a sentence in there that I think made that point a bit confusing. I've altered it a bit to clarify things. @Rachelle - I think it would be a good idea to look at same store sales on a per region basis. Just as same store sales can be an indicator of growth in existing stores, looking at smaller regional areas can indicate if stronger growth region is supporting a flat/negative growth region. This would help investors determine why a company is continuing to open stores in a particular area. @tom – I totally agree and that’s what I was trying to get at with the example. There was a sentence in there that I think made that point a bit confusing. I’ve altered it a bit to clarify things.

@Rachelle – I think it would be a good idea to look at same store sales on a per region basis. Just as same store sales can be an indicator of growth in existing stores, looking at smaller regional areas can indicate if stronger growth region is supporting a flat/negative growth region. This would help investors determine why a company is continuing to open stores in a particular area.

]]> By: Rachelle http://www.myfindependenceday.com/understanding-same-store-sales#comment-1178 Rachelle Mon, 24 Aug 2009 15:37:42 +0000 http://www.myfindependenceday.com/?p=1808#comment-1178 Yes and for precisely the reason that Tom mentioned above. Most of the revenue generated for any given company comes from sales from stores that have been opened longer than a year, possibly longer than 5. However, I have had my qualms about solely weighing in on same store sales over a large geographic region like the US. That said, I think it would be interesting to look at that metric in smaller areas such as by states. A real life example, would be tracking JC Penney's growth in two years in the New York Metro region, given that they recently opened a store in Herald Square. I can already tell you that it will rise, but it isn't because of how long the store has been open but rather the location. Hot tourist area, more traffic just by virtue of location and extremely competitive prices will all make for a successful store. Yes and for precisely the reason that Tom mentioned above. Most of the revenue generated for any given company comes from sales from stores that have been opened longer than a year, possibly longer than 5.

However, I have had my qualms about solely weighing in on same store sales over a large geographic region like the US. That said, I think it would be interesting to look at that metric in smaller areas such as by states.

A real life example, would be tracking JC Penney’s growth in two years in the New York Metro region, given that they recently opened a store in Herald Square. I can already tell you that it will rise, but it isn’t because of how long the store has been open but rather the location. Hot tourist area, more traffic just by virtue of location and extremely competitive prices will all make for a successful store.

]]> By: Weekend Reading – August 21, 2009 | Million Dollar Journey http://www.myfindependenceday.com/understanding-same-store-sales#comment-1171 Weekend Reading – August 21, 2009 | Million Dollar Journey Fri, 21 Aug 2009 10:27:55 +0000 http://www.myfindependenceday.com/?p=1808#comment-1171 [...] My Findependance Day explains same store sales. [...] [...] My Findependance Day explains same store sales. [...]

]]> By: Tom @ Canadian Finance Blog http://www.myfindependenceday.com/understanding-same-store-sales#comment-1170 Tom @ Canadian Finance Blog Wed, 19 Aug 2009 21:30:11 +0000 http://www.myfindependenceday.com/?p=1808#comment-1170 I agree, they are important and I deal with same store sales every day at work. I would argue that in your example, the original 10 stores would likely make up more than half of that total revenue... the new 10 stores wouldn't have been open an entire year to build up their customer base. ;) I agree, they are important and I deal with same store sales every day at work. I would argue that in your example, the original 10 stores would likely make up more than half of that total revenue… the new 10 stores wouldn’t have been open an entire year to build up their customer base. ;)

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