A GIS can help the retailer evaluate how the addition of another store in a trading area could cannibalize sales of its existing store(s).

Question

Quizplus · Accepted Answer

GIS can be used to analyze the sales data of a retailer's existing store(s) and identify the geographic areas from which the store(s) draw customers. By overlaying the proposed location of a new store on this analysis, the retailer can evaluate how much of the new store's potential sales would come from existing customers of its other store(s), and how much would come from new customers. This information can help the retailer make an informed decision about whether to open a new store in the area, and if so, how to optimize its market positioning to minimize cannibalization of existing sales.

A GIS Can Help the Retailer Evaluate How the Addition