Here are some of the examples I cited earlier, with the definitions verbatim from the referenced SEC
filings. These are just some examples of some retailers; we could use a complete industry work-up. Note the inconsistencies in whether internet sales are included, and whether the company has any limitations on calling expansions or replacements 'same store' (using the vernacular term) or as they say more formally, 'comparable stores'.
Please look these over, then as you see if you see this holiday season's 'same store sales' articles, see if you see mention of the differences. (Have a look at Walmart's modifications over the years, too). I have a natural sympathy, looking at this, with any store that is 'straight up' in giving us a true 'same store' picture.
______
Walmart
"Walmart’s definition of comparable store sales includes sales from stores and clubs open for the previous 12 months, including remodels, relocations and expansions. Changes in format are excluded from comparable store sales when the conversion is accompanied by a relocation or expansion that results in a change in square footage of more than five percent. Comparable store sales are also referred to as “same-store” sales by others within the retail industry. The method of calculating comparable store sales varies across the retail industry. As a result, our calculation of comparable store sales is not necessarily comparable to similarly titled measures reported by other companies."
http://www.sec.gov/Archives/edgar/data/104169/00011931251020...
"For fiscal 2006, we considered comparable sales to be sales at stores that were open as of February 1st of the prior fiscal year and which had not been converted, expanded or relocated since that date. Fiscal 2008 and fiscal 2007 comparable sales includes all stores and clubs that have been open for at least the previous 12 months. Additionally, for those fiscal years, stores and clubs that are relocated, expanded or converted are excluded from comparable sales for the first 12 months following the relocation, expansion or conversion. Fiscal 2010 and 2009 comparable sales included sales from stores and clubs open for the previous 12 months, including remodels, relocations and expansions. Fiscal 2008 and prior fiscal years comparable sales do not reflect reclassifications effective February 1, 2009, as noted above."
http://www.sec.gov/Archives/edgar/data/104169/00011931251007...
Target
"Comparable-store sales are sales from our online business and sales from general merchandise and SuperTarget stores open longer than one year, including:
• sales from stores that have been remodeled or expanded while remaining open (including our current store remodel program)
• sales from stores that have been relocated to new buildings of the same format within the same trade area, in which the new store opens at about the same time as the old store closes"
http://www.sec.gov/Archives/edgar/data/27419/000110465910046...
"In the fall we expect our store remodel program to contribute over a full percentage point of incremental comparable store sales."
http://www.sec.gov/Archives/edgar/data/27419/000110465910046...
Kohl’s
"Comparable store sales growth is based on sales for stores (including e-commerce sales and relocated or expanded stores) which were open throughout both the full current and prior year periods. "
http://www.sec.gov/Archives/edgar/data/885639/00011931251006...
Gap
"We have two reportable segments: Stores and Direct.
. Our Direct reportable segment includes sales for each of our web-based brands and Athleta catalog sales.
. The comparable store sales calculation excludes sales from our Direct reportable segment and our wholesale and franchise businesses. A store is included in comparable store sales (“Comp”) when it has been open for at least 12 months and the selling square footage has not changed by 15 percent or more within the past year."
http://www.sec.gov/Archives/edgar/data/39911/000119312510068...
http://www.sec.gov/Archives/edgar/data/39911/000119312510207...
Macy’s
"The Company calculates comparable store sales as sales from stores in operation throughout 2009 and 2010 and all Internet sales. Stores undergoing remodeling, expansion or relocation remain in the comparable store sales calculation unless the store is closed for a significant period of time. Definitions and calculations of comparable store sales differ among companies in the retail industry."
http://www.sec.gov/Archives/edgar/data/794367/00011931251020...
________
Now, if you were an owner in a small, closely held retail chain with a few stores and some internet business, wouldn't you want to know the breakout? Certainly you would if the chain's management was proposing additional stores. Ditto remodels and store expansions, or anywhere where you were making substantial capital investment. You'd want to know the performance of those enhanced (or new 'replacement') stores versus the true, unmodified 'same stores'.
filings. These are just some examples of some retailers; we could use a complete industry work-up. Note the inconsistencies in whether internet sales are included, and whether the company has any limitations on calling expansions or replacements 'same store' (using the vernacular term) or as they say more formally, 'comparable stores'.
Please look these over, then as you see if you see this holiday season's 'same store sales' articles, see if you see mention of the differences. (Have a look at Walmart's modifications over the years, too). I have a natural sympathy, looking at this, with any store that is 'straight up' in giving us a true 'same store' picture.
______
Walmart
"Walmart’s definition of comparable store sales includes sales from stores and clubs open for the previous 12 months, including remodels, relocations and expansions. Changes in format are excluded from comparable store sales when the conversion is accompanied by a relocation or expansion that results in a change in square footage of more than five percent. Comparable store sales are also referred to as “same-store” sales by others within the retail industry. The method of calculating comparable store sales varies across the retail industry. As a result, our calculation of comparable store sales is not necessarily comparable to similarly titled measures reported by other companies."
http://www.sec.gov/Archives/edgar/data/104169/00011931251020...
"For fiscal 2006, we considered comparable sales to be sales at stores that were open as of February 1st of the prior fiscal year and which had not been converted, expanded or relocated since that date. Fiscal 2008 and fiscal 2007 comparable sales includes all stores and clubs that have been open for at least the previous 12 months. Additionally, for those fiscal years, stores and clubs that are relocated, expanded or converted are excluded from comparable sales for the first 12 months following the relocation, expansion or conversion. Fiscal 2010 and 2009 comparable sales included sales from stores and clubs open for the previous 12 months, including remodels, relocations and expansions. Fiscal 2008 and prior fiscal years comparable sales do not reflect reclassifications effective February 1, 2009, as noted above."
http://www.sec.gov/Archives/edgar/data/104169/00011931251007...
Target
"Comparable-store sales are sales from our online business and sales from general merchandise and SuperTarget stores open longer than one year, including:
• sales from stores that have been remodeled or expanded while remaining open (including our current store remodel program)
• sales from stores that have been relocated to new buildings of the same format within the same trade area, in which the new store opens at about the same time as the old store closes"
http://www.sec.gov/Archives/edgar/data/27419/000110465910046...
"In the fall we expect our store remodel program to contribute over a full percentage point of incremental comparable store sales."
http://www.sec.gov/Archives/edgar/data/27419/000110465910046...
Kohl’s
"Comparable store sales growth is based on sales for stores (including e-commerce sales and relocated or expanded stores) which were open throughout both the full current and prior year periods. "
http://www.sec.gov/Archives/edgar/data/885639/00011931251006...
Gap
"We have two reportable segments: Stores and Direct.
. Our Direct reportable segment includes sales for each of our web-based brands and Athleta catalog sales.
. The comparable store sales calculation excludes sales from our Direct reportable segment and our wholesale and franchise businesses. A store is included in comparable store sales (“Comp”) when it has been open for at least 12 months and the selling square footage has not changed by 15 percent or more within the past year."
http://www.sec.gov/Archives/edgar/data/39911/000119312510068...
http://www.sec.gov/Archives/edgar/data/39911/000119312510207...
Macy’s
"The Company calculates comparable store sales as sales from stores in operation throughout 2009 and 2010 and all Internet sales. Stores undergoing remodeling, expansion or relocation remain in the comparable store sales calculation unless the store is closed for a significant period of time. Definitions and calculations of comparable store sales differ among companies in the retail industry."
http://www.sec.gov/Archives/edgar/data/794367/00011931251020...
________
Now, if you were an owner in a small, closely held retail chain with a few stores and some internet business, wouldn't you want to know the breakout? Certainly you would if the chain's management was proposing additional stores. Ditto remodels and store expansions, or anywhere where you were making substantial capital investment. You'd want to know the performance of those enhanced (or new 'replacement') stores versus the true, unmodified 'same stores'.
