science

Like for like

Like for like is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand Like for like rather than just read about it. In short: 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.

Key takeaways

Like for like belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect Like for like to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of Like for like from memory before moving on to harder problems.

Reference excerpt

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. 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. The portion of current sales achieved through activities that are comparable to the activities of the previous year. Investopedia explains Like-For-Like Sales. Using like-for-like sales is a method of valuation that attempts to exclude any effects of expansion, acquisition, or other events that artificially enlarge the company's sales. For example, if you are trying to compare the turnover of company ABC from this year to last year, it makes sense to exclude from the equation any sales resulting from acquisitions this year.

See also Business-to-business B2G Consumer behaviour Department store Final goods Grey pound Point of sales Sales Promotion Retail concentration Retail design Retail software Retailtainment Sales density Shopping Visual merchandising Wardrobing Window shopping

References

Worked examples

Example 1 — a first encounter with Like for like

Start with the simplest possible case. Write down what Like for like claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Like for like before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Like for like ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Like for like

In research: Like for like appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses Like for like in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: Like for like is common in secondary-school and first-year university syllabi. It links to neighbouring topics Finance stubs, Financial ratios, Sales, so understanding it makes those chapters shorter.
In everyday life: Look for Like for like outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study Like for like in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what Like for like means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain Like for like out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Like for like in simple terms?

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.

Why does Like for like matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Like for like?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Like for like.