Related Articles


Cannibalization is a concept in the retail industry related to opening new store locations. Cannibalization often occurs when a retailer opens a new store location in close proximity to an existing store and the existing store location loses customers to the new store. The retail company is still making sales to this customer, but the older store's sales have declined at the cost of an increase in the new store.

Cannibalization is a risk of opening new stores, but retailers will take this risk if they believe their total sales will increase as a result of the new store's openings, meaning the new store brings in customers who had not been previously shopping at the old store.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki