Sales Cannibalization
Find the right balance.
In site selection, finding high performing sites is only half the battle. For chain store operators, store spacing is also an important consideration. Locate too close to your sister stores and you risk over-cannibalizing your own sales. Locate too far apart and you leave yourself vulnerable to competitive threats—and risk leaving revenue dollars on the table.
You wouldn’t think of building a new store without first forecasting its performance. So why would you add additional stores to a market without first understanding the potential impact on your surrounding network? SiteSeer can arm you with the tools needed to estimate sister store impacts and build a store network that maximizes sales.
Closing stores can help an organization fix an underperforming market and free up capital to open profitable stores. SiteSeer can provide your company with the tools to simulate closures and estimate sales recapture. That way, you don’t just close stores based on lease terms and store performance, but also on the positive impact those closures would have on your network.
Beyond closing stores, there is more you can do to right-size your organization. We often refer to these as the four Rs: remerchandise (align product with customer), remodel (make your location more appealing), relocate (move your store to a better location) or resize (increase your offering). Let SiteSeer help you implement a fact-driven approach to optimizing your portfolio.
Schedule a demo to see how SiteSeer can power your retail site
selection and community retail recruitment efforts and find great tenants for your shopping centers and other projects. Create maps, run demographic reports, build models, and choose the best retail sites.
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