how to improve like for like sales
improving like for like sales translates to increased revenues and a healthier bottom line to improve like for like sales companies can employ several strategies promotions and sales are effective ways to increase sales and drive traffic and it sets the business apart from its competitors these events must be carefully planned and executed to protect profits and encourage customers to continue purchasing when done properly customer loyalty increases and new customers are converted because there is no industry standard for calculating like for like sales they are not usually used as the sole metric for measuring growth and performance companies can also increase like for like sales by gathering customer information and using it to expand their customer base and increase sales collecting customer data can help companies identify what s important to customers and how to craft future promotions and sales this can be achieved through incentive or rewards programs whereby customer data is gathered in exchange for rewards and exclusive or early access to sales most importantly companies can stay in front of the customer promoting new products and offering deals to encourage purchases special considerationsa company s fourth quarter reporting is often the best time to look at a company s results and specifically at its like for like sales metrics as it provides a comparison based on the full fiscal year and prior fiscal year in addition to reporting sales revenue by comparable store sales or geographical store sales companies may use other segmentation approaches that are worth following in particular global companies have to deal with foreign exchange rates which can affect sales revenue many of these companies will include details on currency adjustments and how they influenced sales and net income real world examplelike for like or same store sales commonly control openings and closings by including only locations that have been in operation for a year or more this also is key to isolating growth catalysts mcdonald s corp reported a global comparable sales increase of 7 5 in the first quarter of 2021 with a u s comparable store sales increase of 13 6 while total sales revenues increased 9 overall 1 what does that tell us mcdonald s opened a lot of new stores but existing store sales grew relatively modestly 