What accounting calendar is commonly used by retailers to structure their fiscal year?

The 4-5-4 calendar is commonly used by retailers to structure their fiscal year because it provides a consistent framework for evaluating sales performance and managing inventory. This calendar divides the year into quarters, with each quarter consisting of two months with four weeks and one month with five weeks. This structure helps retailers accurately compare sales figures across different periods.

The 4-5-4 format allows retailers to align their accounting periods more closely with their operational cycles, accommodating seasonal fluctuations in sales and inventory management. For example, in peak seasons like the holiday period, the extra week in the fifth week of a month can help capture additional sales.

While other accounting calendars, such as the 12-month calendar or the fiscal year calendar, may be used in various industries, the 4-5-4 structure is particularly beneficial in retail contexts where sales trends and inventory flows can vary significantly throughout the year.