The modeling

of store sales

In addition to sales data, Retail Int. collects store format data (sales area, concept, year of opening, etc.), defines the competitive intensity of each store area and models a store target sales based on the sales of neighbour stores, its format and the level of local competition. This simulation enables retailers to :

  • Diagnose the performance of their existing stores
  • Estimate forecast sales on new locations

More information on the sales simulation model..

Sales modeling Diagnosis

The tool defines the annual target turnover for each store, enabling retailers to :

  • Identify underperforming stores and quantify the potential for improvement
  • Help make decisions such as
    • Team action plan
    • Refurbishing
    • Closure, relocation, rent renegotiation
    • Setting of budget targets

Sales modeling Expansion

Validation of new store opening projects

The tool defines the annual target turnover for a retailer in a new location, enabling the retailer to validate the project or not.

Expansion plan

The tool enables the retailer to proactively identify locations with high sales potential where the brand is not present, and thus helps drawing up an expansion plan.

Sales simulation model

The target turnover for a E1 store in a given location depends on :

  • Sales of neighbour stores
  • Average turnover ratios between the neighboor store brands and E1 for all their other common locations
  • E1 store format and level of competition in the area
  • Format of other stores and the level of competition in the areas

Using an iterative (genetic) algorithm, the model first quantifies the impact of format (surface area, seniority, concept, operating method, etc.) and competition on sales for each brand, establishing sensitivity curves that best explain the store sales.