Retail and consumer goods
Like-for-like sales (LFL)
Sales growth from stores open in both periods, leaving out new and closed stores.
Facts checked against sources onWhat does Like-for-like sales (LFL) mean?
Like-for-like sales growth compares sales in the same set of stores (and often the same online channels) this year and last year, leaving out stores opened, closed or heavily changed in between. It separates growth from existing stores from growth bought by opening new ones. Example: a retailer's total sales grow 10 percent, but 8 points come from new stores; stores open in both years grew only 2 percent, so LFL growth is 2 percent. Rules vary: many retailers count a store only after it has been open 12 or 13 months. In the United States it is called same-store sales or comparable (comp) sales.
Where does it come up in case interview prep?
- How retail works and makes moneyLesson in Retail
- Store economics: the numbers that decide profitLesson in Retail
- Retail players, trends, and how to crack retail casesLesson in Retail
- How the beauty and personal care industry worksLesson in Beauty and personal care: cosmetics, skincare, haircare and fragrance
- Beauty players, trends 2024 to 2026, and how to crack the casesLesson in Beauty and personal care: cosmetics, skincare, haircare and fragrance
Related terms
- Same-store sales (comparable sales)The US name for like-for-like sales: growth at restaurants or stores open in both periods.
- Sales per square metreStore sales divided by selling space: how productive the space is.
- CannibalizationA new product taking sales from the company's own products.
- Shrink (shrinkage)Inventory lost to theft, damage, errors or spoilage.
- MarkdownA lasting price cut to clear stock that is not selling.
- Sell-through rateThe share of stock received that has been sold within a period.
- Private label (own brand)Products sold under the retailer's own brand rather than a manufacturer's.
- Trade spendThe money brands pay retailers and distributors to stock, display and discount their products.
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