Like for like (LFL) growth is a measure of growth in sales, adjusted for new or divested businesses. This is a widely-used indicator of retailers' current trading performance.[1] The adjustment is important in businesses that show a significant dynamic of expansion, disposals or closures.[2] 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.[1]