Understanding and Modelling the Impacts of a New Competitor on the Sales of Established Businesses Within Similar Markets

The research conducted for this study presents a Geographic Information Systems (GIS) and spatial analysis to understanding and modelling the impacts of a new competitor on the sales of established businesses within similar markets. Data for this analysis was provided by Canadian Tire Corporation (CTC).This study will outline and create trade areas for all stores in the Part Source network to determine which stores will be the focus of this study. Once focus stores have been determined, sales data was analyzed in two ways. The first analysis was conducted to determine the distance decay effects of the new competitor on sales. The second analysis utilized geographic weighted regression (GWR) models on expenditure and vehicle data.