On the Monitoring of Retail Networks: technical draft sketching a realistic model-based approach to the control of locations of retail business units within a competitive environment

Bultez, Alain;Lecat, Benoît
(2002)

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Authors
  • Bultez, AlainFUCaM
    Author
  • Lecat, BenoîtFUCaM
    Author
Abstract
(en) In order to realise an economic diagnosis of the physical network (sum of points of service) of food retailing sector (on Belgian territory), we've built a model that is able to question the existing network by benchmarking it against a pseudo-optimal one, designed so as to maximise the expected value of the net income such a(n) (eventually) modified set of POS (point of service) could theoretically yield. This normative standard should naturally take into account not only the economic potential of the trading areas in which branches get located but also the effects of external competition as well as of the cannibalisation. Relocation issues shall be examined by reference to alternative satisfactory designs (alternatives will result from sensitivity analyses), which will be derived by appropriate heuristics (non linear integer programming). This tool should allow us to identify the opportunities to capture a greater market share in terms of the relocation of branches.
Affiliations
  • Louvain School of ManagementMarketing

Citations

Bultez, A., & Lecat, B. (2002). On the Monitoring of Retail Networks: technical draft sketching a realistic model-based approach to the control of locations of retail business units within a competitive environment. https://hdl.handle.net/2078.5/70407