The modeling

of store sales

In addition to sales data, Retail Int. collects shop format data (sales area, concept, year of opening, etc.), defines the competitive intensity of each shop and models a shop’s target sales as a function of the sales of neighbouring chains, its format and the level of local competition. This simulation enables retailers to :

  • Diagnose the performance of their existing shops
  • Estimate forecast sales for new locations

More information on the sales simulation model..

Simulation CA Diagnosis

The tool defines the annual target turnover for the chain’s sales outlets, enabling :

  • Identify shops at risk and quantify the potential for improvement
  • Help make decisions such as
    • Team action plan
    • Renovation
    • Closure, relocation, rent renegotiation
    • Budget targets per shop

CA Expansion simulation

Validation of location projects

The tool defines the target turnover for a retailer in a new location, enabling the potential of a project to be validated or not.

Expansion plan

The tool enables you to proactively identify locations with high sales potential where the brand is not present, and thus helps you to draw up a plan to expand or fill in empty areas.

Sales simulation model

The target turnover for an E1 storein a given location depends on :

  • Sales of neighbouring brands
  • Average turnover ratios between these banners and E1 for all their common locations
  • E1’s shop formatand the level of competition on the site
  • The format of other chains’ shops and the level of competition on the site

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