One of the greatest benefits Geotech Information Services has seen in using retail gravity modelling, is the ability to calculate the likely impacts of cannibalisation on an existing store before a new store is opened, by analysing the likelihood of a consumer visiting one store over another.
Often the impacts of cannibalisation from opening a new store are not necessarily the greatest on the closest store. Cannibalisation impacts are often the greatest on nearby stores that are less conveniently located, or on those stores that are less attractive (have sub standard facilities for example). Retail gravity modelling can be used to determine what the catchments are around stores, so that cannibalisation estimates can be made.
Geotech Information Services have seen great benefits from the use of retail gravity modelling for all industries, but in particular for Quick Service Restaurants (where competition is fierce), and for more destination driven brands that a consumer specifically seeks out – such as grocery and home-improvement industries.