Documente Academic
Documente Profesional
Documente Cultură
Retail Location and Site Retail Location and Site Selection Selection
Professor Edward Fox
Cox School of Business/SMU
What are the effects of proposed changes in retail sites on the revenues of new and existing stores?
Recognizes that consumers may use multiple stores to meet their needs - shopping strategically!!
Specifically, how are retailer revenues affected by nearby supermarkets, drug stores, mass merchandisers and supercenters, dollar stores and warehouse clubs?
RFRS Model
For every household in the panel, our models predict: (1) Number of visits quarterly (2) Spending per visit Predictors (1) Travel times/distances (2) Store sizes (3) Retail agglomeration (4) Trends (5) Seasonality (6) Demographics
RFRS Forecasting
Model estimates form the basis for forecasting and sensitivity analysis whenever new sites or scenarios are considered Potential/actual new stores Potential/actual store closings Future periods Population changes
RFRS An Example
What is the impact of the closing of Montgomery Wards stores in Chicago? Which Montgomery Wards locations would offer the most advantageous sites?
RFRS An Example
Montgomery Wards store locations and sample of shoppers providing expenditure data
RFRS An Example
Where will Montgomery Wards sales go?
7.7 7% 7.7 7% 9 % .9 .9 9 % 9% .9
Wal-Mart Other
Kmart
RFRS An Example
What if Kmart opened a store at any current MW site?
RFRS An Example
What if Target opened a store at any current MW site?
RFRS An Example
What if WalMart opened a store at any current MW site?