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As I understand their placement of stores, the "cannibalization of customers" is how they determine if they have sufficiently saturated a metropolitan area. Bas
by Kaizyn 15y ago
As I understand their placement of stores, the "cannibalization of customers" is how they determine if they have sufficiently saturated a metropolitan area. Basically, they keep building stores in a city until adding one more doesn't increase their overall business. The basic idea is that if they haven't saturated an area, then there's room for competitors to put in stores. I wish I could remember which publication I read this in.