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Like for like (LFL) is a retail term used to compare the growth rate of stores with similar circumstances to determine if revenue growth has been the same. This strategy can also be used by other businesses to evaluate policy changes or improvements. The process requires comparing the most recent period with prior periods to gain a deeper understanding of revenue generation.
Like for like (LFL) is a term often used in retail circles to identify the rate of growth in stores that have essentially the same circumstances and traits to determine if revenue growth has been more or less the same in each of those stories. To accomplish this, a chain will exclude any stores that do not meet the criteria used for analysis, such as stores that have expanded, recently closed, or opened within a specific time frame. Excluding or excluding stores that do not fit the criteria used for comparison makes it easier to determine if all remaining stores are experiencing a similar growth pattern, sometimes as a result of specific marketing or sales strategies implemented since the last comparison. .
While the like for like growth assessment is a common tool used by retailers, the same basic strategy can also be used with other types of businesses that operate across multiple locations. For example, a restaurant chain might make this type of comparison, typically by identifying all restaurants that are established within communities with a certain population range, use the same menus, and have the same design and layout. As with the retail model, the chain can choose to exclude any location that has opened in the last year or two.
Hotel chains may also sometimes use this model as a means of evaluating how certain policy changes or improvements are affecting business volumes at hotels that serve the same basic demographic and have been in business for more than a certain amount of time. number of years. This approach can often provide a good idea of whether those changes are having an overall positive impact on business, or whether there are signs that the changes are failing to attract or even retain regular hotel guests.
With any app, the idea behind a like for like assessment is to gain a deeper understanding of how well those placements are doing in terms of revenue generation. The process often requires comparing the results of the most recently completed period with those of prior periods, making it easy to determine whether earnings are relatively flat over time, or whether they have risen or fallen. The data generated from a like-for-like analysis can often provide important clues about how to proceed in the future, both in terms of improving store performance in the locations involved, and in planning for the establishment and operation of newer locations. so they also have a better chance of success.
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