Why like-for-like sales matter to a first-time founder
The measure separates growth from existing operations from growth created by opening or acquiring more locations. That helps founders see whether the underlying offer is gaining demand. Companies define the comparable set differently, so investors should check exclusions and avoid comparing headline percentages without reading the methodology.
Examples of like-for-like sales
A café chain has ten shops, but two opened during the year. Total sales rise from ₹400 million to ₹500 million, or 25%. Sales across the eight shops open in both periods rise from ₹400 million to ₹420 million, making like-for-like growth 5% under that definition.
Common misunderstanding
It is not the same as total sales growth. Total growth includes new shops, closures, acquisitions and disposals, while like-for-like sales aim to hold the operating base constant. It is also not universally standardised, so weather closures, refurbishments and currency effects may be treated differently.
When to use it
Use it when a retail, hospitality or location-based business has enough mature sites to compare consistent periods. Publish the eligibility period and exclusions alongside the result. A very young company with frequent format changes may learn more from cohort revenue or unit economics than from this measure.