Like for like
Encyclopedia
Like for like growth is a measure of growth
in sale
s, adjusted for new or divested businesses. This is a widely-used indicator of retailers' current trading performance. The adjustment is important in businesses that show a significant dynamic of expansion, disposals or closures. To compare sales figures from different periods is only meaningful, as a measure of the effectiveness of the sales function, when using the same basis for measurement.
One method compares the latest year's sales only to those from activities or locations that were in effect the previous year as well. This method would ignore sales that were only possible this year, for reasons such as a merger or acquisition
or the launch of a new product
or store.
However, there is a significant choice of alternative methods of calculation, which makes it difficult to compare figures quoted by different retailers.
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
in sale
Sale
Sale may refer to:* Sales * Sale, discounts and allowances in the prices of goods, such as:**Fire sale, a drastic discount in prices**Loan sale, a sale under contract of all or part of the cash stream from a specific loan...
s, adjusted for new or divested businesses. This is a widely-used indicator of retailers' current trading performance. The adjustment is important in businesses that show a significant dynamic of expansion, disposals or closures. To compare sales figures from different periods is only meaningful, as a measure of the effectiveness of the sales function, when using the same basis for measurement.
One method compares the latest year's sales only to those from activities or locations that were in effect the previous year as well. This method would ignore sales that were only possible this year, for reasons such as a merger or acquisition
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
or the launch of a new product
Product (business)
In general, the product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce, from the Latin prōdūce ' lead or bring forth'. Since 1575, the word "product" has referred to anything produced...
or store.
However, there is a significant choice of alternative methods of calculation, which makes it difficult to compare figures quoted by different retailers.