Estimation of retail sales under competitive location in Mexico

This study proposes a useful combination of a spatial interaction model and simulation approaches for the reliable estimation of retail interactions and store sales based on data of consumer shopping behavior. The real case study empirically demonstrates this approach by building an operational retail interaction model to estimate expenditure flows from households to retail stores in Mexico. The analysis compares the results from the proposed forecasting method to actual performance data. The forecasting accuracy is satisfactory even when little retail and consumer information is available.