Retail Outlet Location a Model of the Distribution Network Aggregate Performanc
Retail Outlet Location a Model of the Distribution Network Aggregate Performanc
Philippe Naert
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Tratcs \. And X 1 c VJith tht: currRnt number of outlets, D^ A . = ThGSG valuR'5 are very hip, h, which is to be Rxpectcd dieted equilibrium market share is . A one per cent increase in d. /Cdj + ri ], and assuminr ri remains constant, equilibrium mar- 1 i c ' c Ket share would increase by per cent. Whether such an increase in share would be worth v-jile depends on industry sales volume, unit profit, and the number of new outlets needed to incr-easc outlet share tjy one percent. More interestin...g of course is to look at the problem on a regional basis. For this particular product, we have informa- tion on four different regions. The company's outlet share varies from a high of about ID per cent in one region to a low of about 5 per cent in another region. Incremental year'ly regional sales per outlet added are sho'. 'vn in Table V for each of the four regions. Adding outlets in region contributes thehighest marginal return. It is quite possible that the response parameters differ r ^ c r o s s regions.
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