Retail Site Selection
Retail Site Selection
Retail Site Selection
Razi Anwar
What are the effects of proposed changes in retail sites on the revenues of new and existing stores?
Access to consumers
Number Characteristics Growth
Agglomeration captures the countervailing effects of complementarity and competition among retailers
Intra-type - Stores of the same type locating near one another
Facilitates consumer search Examples: motor miles and restaurant rows
Price search
Our research incorporates price uncertainty, allowing shoppers to terminate or continue a shopping trip (unplanned)
How does retail location affect multi-store shopping? RETAIL LOCATION (research with Steve Postrel and Amanda McLaughlin)
Relative to customers Relative to other stores
Retail Competition
Destination Effect
Specifically, how are retailer revenues affected by nearby supermarkets, drug stores, mass merchandisers and supercenters, dollar stores and warehouse clubs?
Store square footage A wide variety of competing retailers can be incorporated into the model
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
THANK YOU!!