Everything you need to know about what is Comps in retail

What are comps in retail? In simple terms, comps (also called same-store sales or comparable store sales) compare the revenue of stores that have been open for at least 12 months in one period with the revenue of those same stores in a prior, identical period, usually the previous year.

New stores and recently closed stores are excluded to keep the comparison “like for like” and show true organic performance. Many multi-unit retail and restaurant chains report comps each quarter because they show whether existing locations are driving growth, regardless of expansion.

Analysts and media often focus on comparable store sales in earnings releases as a quick signal of whether a retailer is genuinely gaining traction with customers or relying mainly on opening more stores.

How comps are calculated To calculate comps, a retailer first defines its comparable store base—typically all stores that have been open for at least 12–13 months and are trading throughout both periods being compared…