Comps in retail (short for comparable store sales) measure the growth or decline in sales at existing stores, excluding the impact of new openings or closures. This makes comps one of the core metrics executives and investors use to judge the underlying health of a retail business over time, alongside same-store sales.
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. Sales from new stores, heavily remodeled stores that were closed for part of the period, or locations with major format changes are typically excluded, ensuring consistent results.
Meaning, a +5% result indicates that comparable stores generated 5% more revenue than during the same period last year, while -3% would show a decline.
Why comps matter so much
Positive comps signal that a retailer is getting more from its existing footprint—either by growing traffic, increasing average ticket, or both. Because they strip out the effect of new stores, comps are widely seen as a cleaner indicator of underlying demand and store-level execution than total sales alone.
Weak or negative comps can reveal issues that new store openings might otherwise mask, such as declining visit frequency, weaker assortments, or competitive pressure. For this reason, same-store sales growth is frequently highlighted in analyst reports and equity research when comparing retail stocks.
Key factors that drive comps
Two main levers drive comps: traffic (the number of visits) and average ticket (the spend per visit). Strong marketing, loyalty programs, localized assortments, and a smooth in-store experience can all help lift both traffic and ticket, pushing comparable store sales higher.
External conditions also play a role. Macroeconomic trends, consumer confidence, weather, and competitive openings or closures can all influence how comps move from quarter to quarter. Due to seasonality, many retailers only include stores in their comparable base once they have traded through at least one full year, thereby covering major peaks and troughs.
How retailers use comps in decision-making
Inside a retail organization, comps support benchmarking across regions, formats, and individual stores, helping leaders identify over- and under-performers. Consistently negative comps may trigger deeper analysis, changes in assortment or pricing, or even decisions to relocate or close specific stores.
On the planning side, comparable store sales trends feed directly into future sales targets, inventory buys, and labor budgets. A forecast 3–4% comp increase, for example, will shape how much stock, staffing, and marketing support a retailer allocates to the existing fleet versus new site openings.
