Retail Store Performance Model the Impact of Own-branch 'Friendly Fire'

Abstract

Store location modelling is still far from accepted practice in most national retailers. A growing number, however, are implementing regression-based approaches. While as a statistical technique, regression is far from innovative, its gradual acceptance in retailing is bringing welcome benefits to many companies. Implementation, though, requires careful planning. Recent developments have concentrated on incorporating competitive forces of two types. The impact on sales of competitors' brands and store networks. The fears of cannibalisation of sales as dense branch networks place a retailer's own stores in close proximity to each other — the impact of ‘friendly fire’.