The formula to calculate the comparable sales growth is:
\[ \text{G} = \left( \frac{S_c - S_p}{S_p} \right) \times 100 \]
Where:
Comparable sales growth, also known as same-store sales growth, is a measure used by businesses to evaluate the performance of their existing stores or sales channels over a specific period. It compares the sales of the same stores or channels during different periods, typically year-over-year, to assess how well the business is growing organically. This metric is crucial for retailers and other businesses with multiple locations, as it helps isolate the performance of existing stores from the impact of new store openings or closures. A positive comparable sales growth indicates that the business is improving its sales performance in its established locations.
Let's assume the following values:
Step 1: Subtract the sales in the previous period from the sales in the current period:
\[ \text{S_c} - \text{S_p} = 120,000 - 100,000 = 20,000 \]
Step 2: Divide by the sales in the previous period:
\[ \frac{20,000}{100,000} = 0.2 \]
Step 3: Multiply by 100 to get the percentage growth:
\[ \text{G} = 0.2 \times 100 = 20\% \]
Therefore, the comparable sales growth is 20%.
Let's assume the following values:
Step 1: Subtract the sales in the previous period from the sales in the current period:
\[ \text{S_c} - \text{S_p} = 150,000 - 130,000 = 20,000 \]
Step 2: Divide by the sales in the previous period:
\[ \frac{20,000}{130,000} = 0.1538 \]
Step 3: Multiply by 100 to get the percentage growth:
\[ \text{G} = 0.1538 \times 100 = 15.38\% \]
Therefore, the comparable sales growth is 15.38%.