Global Definitions Database

Building upon the gravitational model theorized by Reilly’s Law of Retail Gravitation, a model that delineates trading areas on the basis of the product assortment carried at various shopping locations, travel times from the shopper's home to alternative locations, and the sensitivity of the kind of shopping to travel time; to account for differences in the attractiveness of a store relative to other stores, a measure of store utility such as sales volume, number of products in inventory, square footage of sales floor, store parcel size, or gross leasable area (GLA) is used in conjunction with the distance measure; potential store locations can also be input into the model to determine new sales potential as well as the probabilities of consumers patronizing a new store instead of other stores.