Sales Cannibalisation

The impact new stores or territories will have on existing stores or territories is a critically important question. There is little point opening a new store if a significant proportion of its sales are going to ‘migrate’ from other existing stores.

Geotech’s unique modelling methods are perfect for the task of estimating cannibalisation impacts.

While cannibalisation is an important consideration for all types of businesses, this is even moreso when franchisees are involved. To avoid disgruntled franchisees (and potential litigation), franchisors need to ensure that every effort is made to understand the impact new stores will have on existing stores. This is where sales cannibalisation modelling can assist.