Retail Gravity Modelling

Consumer choice to frequent a location is based on two fundamental considerations 1) customer convenience (drive and travel times); and 2) brand attractiveness.

Retail Gravity modelling is based on these two fundamental considerations, from which the probability of consumer patronage to any location, such as a store or shopping centre, can be calculated.

retail gravity modelling map

The Power of Retail Gravity Modelling

The power of retail gravity modelling lies in the fact that it simulates and is representative of real consumer behaviour – the choices that consumers make in the real world.

It is the modelling tool of choice for simulating consumer behaviour for retail and service industries worldwide.

Geotech Information Services uses retail gravity modelling to assist businesses determine the likelihood of consumers visiting their store or location over another, or over that of a competitor location.

Using Retail Gravity Modelling to Minimise Cannibalisation Impacts

One of the greatest benefits Geotech Information Services has seen in using retail gravity modelling is to determine the likelihood of a consumer visiting one store over another, to then calculate the likely impacts of cannibalisation on an existing store before a new store is opened.

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 estimates of the impacts of cannibalisation before a new store is opened 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 – grocery and home-improvement industries.

Get in touch to learn more about how we can help your business.

Prediction Modelling

Geotech Information Services can also assist with prediction modelling and sales forecasting.