Dave's ESL Cafe's Student Discussion Forums

[zeppy]

1. what's the difference between same-store and chain store ?
2. "5%-7% same-store growth refer to "open more new store" or "increase more sales volume" ?
thanks for your help !

New York (January 21, 2004) - (Dow Jones)--Target Corp. reported same-store sales for the latest week ended Jan. 17 were below plan.

The company had been expecting 5% to 7% same-store growth for the Target chain stores.

The discount retailer was also expecting total corporation same-store sales to be 1% lower than Target stores. Sales for the entire corporation include the operations of Target stores, as well as Mervyn's and Marshall Field's.

[bud]

Hi Zeppy,

1. 'Chain store' is a term that is known to everyone. It's a large company that has stores in many localities. 'Same-store' is apparently a statistical term that is specific to the business world. Here is a good definition:

"When earnings for retail outlets like KMart, Walmart, Best Buy, etc. are reported, we see two figures, namely total sales and same-store sales. Same-store comparisons measure the growth in sales, excluding the impact of newly opened stores. Generally, sales from new stores are not reflected in same-store comparisons until those stores have been open for fifty three weeks. With these comparisons, analysts can measure sales performance against other retailers that may not be as aggresive in opening new locations during the evaluated period."

from: http://invest-faq.com/articles/analy-ss-sales.html

2. "5%-7% same-store growth" refers to the growth only in the stores that have been open for at least 53 weeks. It excludes the sales totals of new stores in the chain that were opened within the last 53 weeks.

I learned something on that one, too. Thank you.

[zeppy]

Thanks for your information. anothor resourse tells us more.

http://www.fool.com/news/indepth/retail/content/samestore.htm

have a nice day !

-zeppy

[bud]

Very informative! Thanks, Zeppy.