What Is Same-Store Sales Growth?
Revenue growth at existing locations compared to the same period last year, isolating organic growth from growth driven by opening new locations.
Same-Store Sales Growth Explained
Same-store sales growth (also called comparable sales or comp sales) measures how much revenue increased at locations that have been open for at least one year. It strips out the effect of new location openings to show whether existing operations are getting stronger or weaker.
A multi-location business might report 25% total revenue growth, which sounds impressive. But if 20% came from opening new locations and same-store growth was only 5%, the existing business is barely growing. Conversely, if total growth is 10% but same-store growth is 12%, the existing business is very healthy.
The metric is standard in retail, restaurants, healthcare practices, and service businesses. PE firms use it to evaluate whether a multi-location business has organic growth momentum or is just growing through unit expansion.
Improving same-store sales requires different strategies than opening new locations. It focuses on increasing visit frequency, raising average transaction value, expanding service offerings, and improving local marketing at existing sites.
Why Same-Store Sales Growth Matters
Same-store sales growth is the most honest growth metric for multi-location businesses. Positive same-store growth means the business model is getting stronger. Negative same-store growth means new locations are masking underlying problems.
How to Calculate Same-Store Sales Growth
Same-Store Sales Growth = (Current Period Revenue - Prior Year Revenue) / Prior Year Revenue x 100 (for locations open 12+ months)Common Mistakes
- 1
Reporting total revenue growth without breaking out same-store performance
- 2
Including locations open less than 12 months in the calculation, which skews results
- 3
Ignoring same-store decline while celebrating total growth from new unit openings
Related Terms
Multi-Location Operations
Managing business operations across multiple physical locations while maintaining consistency, efficiency, and quality at every site.
Multi-Location Marketing
Marketing strategies designed specifically for businesses with multiple physical locations, balancing brand consistency with local market relevance.
Net Revenue Retention (NRR)
The percentage of recurring revenue retained from existing customers over a period, including expansions and contracting, excluding new customers.
Run-Rate Revenue
Annualized revenue projection based on current performance, used to estimate future revenue by extrapolating a recent period's results.
How Attainment Helps
Related Services
Frequently Asked Questions
What is a good same-store sales growth rate?
3-5% same-store growth is solid. 5-10% is strong. Above 10% is exceptional and usually driven by a major initiative (service expansion, pricing change, or marketing program). Negative same-store growth is a warning sign that requires investigation.
How do you improve same-store sales?
Four levers: increase visit frequency (loyalty programs, reactivation campaigns), increase average ticket (upselling, bundling), reduce customer churn (better service, AI follow-up), and improve local marketing (Google Business Profile, reviews, local SEO).
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