What is the 4-5-4 Method?
The 4-5-4 Method is a common calendar system used in retail and business planning to divide a year into quarters, where each quarter typically consists of 13 weeks. These weeks are distributed across the months in a 4 weeks, 5 weeks, 4 weeks pattern. This structure ensures consistency in comparing financial performance across months and years, as it aligns weeks with business cycles rather than irregular calendar months.
For example:
January: 4 weeks
February: 5 weeks
March: 4 weeks
This pattern repeats for each quarter. However, in a 53-week year, the extra week is usually added to the final quarter, making it a 4-5-5 structure. This adjustment ensures the entire year remains aligned with weekly planning cycles without disrupting earlier quarters.