The Retail Calendar differs from the traditional Gregorian calendar by maintaining the same number of weekends in comparable months. The 4-5-4 calendar is a popular Retail Calendar that defines each month to be either 4 weeks or 5 weeks.
In this format, the year is divided into 4 quarters, with monthly sets of 4 weeks - 5 weeks - 4 weeks. You can read more about the retail calendar and how Toolio's free Retail Calendar can be used to improve merchandising and sales reporting.
This approach allows for more accurate YoY sales comparisons but introduces an interesting problem since 365 days in a year divides into 52 weeks + 1 day. To account for this extra day (while keeping in mind leap years), a 53rd week is "restated" in the Retail Calendar every 5 to 6 years.
How it works:
Since the 4-5-4 Retail Calendar ends in January, a 53rd week is determined to be necessary if more than 3 days are left in January after the 52nd week.
In 2012 for example, the 52nd week of the 4-5-4 Retail Calendar ends on Saturday, January 26. That leaves 5 days (January 27 - 31) remaining in the month of January and thus requires a 53rd week to be added (January 27 - February 2).
In the Restated Calendar, this additional week is accounted for by pushing every week in the Retail Calendar backward by 1 week. As a result, the first week of the 2012 fiscal year is disregarded. Please see below for the Restated and Non-Restated 2012 Retail Calendars
Restated 2012 Retail Calendar:
Non-Restated 2012 Retail Calendar:
By making this adjustment, we greatly improve YoY comparability at the weekly level. Restated Calendars help ensure that high-sales holidays fall in the same week each year. You can quickly switch between Restated and Non-Restated formats using the Toolio Retail Calendar.