The Retail Interaction report quantifies the options available for shoppers to choose between multiple retailers. The Trade Areas for the focus stores overlap with their competitive stores, and the options available to the shoppers in that overlapping Trade Area are modelled. This helps identify key areas of competitive pressure for a retailer and ranks the dollars at risk. Stores, banners, and accounts can be grouped as focus and competitive stores to understand the larger dollars at risk.
This output does not determine where shoppers decide to go, only the options available.
Dollars in this report are indicative of the competitive pressure. The relative share (Index, percent) is more important than the specific dollar value.
Helps answer the questions:
- Which store faces the most competitive pressure?
- Who are the competitors around my store?
- Which are the largest threats that I should develop a competitive strategy for?
- Which banner is my largest threat?
- Which of my stores are impacted by a specific competitor?
- Is there cannibalization within my organization?
There are six reports within the Retail Interaction output:
- Key Findings: Ranking of focus stores based on their relative threat Index.
- Focus Trade Area Detail: Store-level detail on the competition.
- Focus Account Summary: Competition summed at Account level—not needed if only one Account.
- Focus Banner Summary: Competition summed at Banner level—not needed if only one Banner.
- Competitor Account Overview: Focus store competitive set is summed to the Account and Channel level.
- Competitor Banner Overview: Focus store competitive set is summed to the Banner and Channel level.
ENVISION users can find this information without leaving the platform by clicking the "How to Read" button in the top-right corner of your reports.
Note: The Retail Interaction tool only works with Spectra Trade Areas system areas. Learn more about Using the Retail Interaction Tool.opens in new window
This page shows a one-line summary for each store included in the analysis.
SRCID: Stands for Source ID, the unique code for the store or banner provided by TDLinx.
Store Detail: The store name and number, if available.
Address: Store address location.
Store ACV: All Commodity Volume. Created by TDLinx, it represents total store sales and is expressed in a range of values.
Total Dollars at Risk to Competitor: Refers to the total Focus Store ACV dollar amount that the competitors could have access to. The competitive universe was set by the minimum thresholds in the report, between 2% and 15% of the ACV of the focus store. This total sum of pressure is usually larger than the ACV of the store.
Relative Threat Index: The relative threat of the selected stores to each other. Calculate by the Total Dollars at Risk to Competitor/Average of set of focus stores. This is dependent on the focus store set and threshold selected.
Total # of Competing Stores: A count of competing stores that interact with the Focus stores Trade Area.
In this example, Costco Wholesale – 533 has a store ACV in the $219,700,000 range. The Total Dollars at Risk for that store is $2,139,511,354. This store experiences the highest relative competition of all focus stores because they have the most dollars at risk to 30 competitors. The dollars at risk are more than sixteen times higher than the average level of competitive pressure to the focus stores (Relative Threat Index = 1677). The high dollars at risk and the number of competing stores suggest that this store will need to be diligent with their in-store experience and pricing to maintain customer satisfaction and retention.
This page shows the store-level detail for each store selected for analysis.
TDLinx: Unique code for the store or banner provided by TDLinx.
Store Detail: The store name and number, if available.
Address: Store location.
Retail Channel Classification: Channels available, i.e. 01 Grocery, 02 Mass, 03 Drug, 04 Club, 05 Convenience & Gas.
Store ACV: All Commodity Volume. Created by TDLinx, it represents total store sales and is expressed in a range of values.
Total Dollars at Risk to Competitor: The total focus store dollar amount at risk between the focus store and competitor.
% of Dollars at Risk to Competitor: The percentage of total dollars at risk vs the focus store ACV.
Total Dollars at Risk to Focus: Refers to the competitor dollar amount the focus store could have access to.
% Dollars at Risk to Focus: The percentage of total dollars at risk vs the total competitor ACV.
Distance (km): A straight line measure between the focus store and the competitor.
In this example, focus store Costco Wholesale #533 has an ACV in the $219,700,000 range. Overall, they have $2,139,511,354 at risk to the stores with overlapping trade areas (capped at the threshold set for the report, between 2%-15% of the focus store ACV). As a percentage, this is 973.83% of their ACV. While this sounds impossible, the dollars at risk speak to the many options available to potential shoppers who live in overlapping trade areas. The competition between Costco Wholesale #533 to WalMart Supercentre #3043 is $36,681,489 or 921.42% of the WalMart Supercentre ACV.
This page shows all focus stores rolling up to a one-line summary for each account.
Focus Account: The account name.
Store ACV: All Commodity Volume. Created by TDLinx, it represents total store sales and is expressed in a range of values.
Total Dollars at Risk to Competitor: Refers to the total Focus Store dollar amount at risk between the two competitors.
Relative Threat Index: The relative threat of the selected stores to each other. Calculated by Total Dollars at Risk to Competitor/Average of set of focus stores, this depends on the focus store set and threshold selected.
Total # of Store Interactions: The number of stores impacted by the account.
# of Unique Competitive Stores: A count of competitors within the Trade Area.
In this example, Loblaw Companies Ltd has a Relative Threat Index of 862, the highest pressure of all the focus accounts. There are 425 store interactions and 76 are unique, indicating some stores are competing with multiple locations.
This page shows a one-line summary for each banner associated with the Focus Stores.
Focus Banner: A code assigned by TDLinx.
Total Store ACV: All Commodity Volume. It represents total store sales but is expressed in ranges of values.
Total Dollars at Risk to Competitor: Refers to the total Focus Store dollar amount at risk to all competitors.
Relative Threat Index: A score which uses dollars at risk in its calculation. The Retail Threshold setting of risk was assigned when the report was created. The Retail Threshold value must be between 2% and 15%. Two percent will give more dollar comparison results, and 15% will provide fewer results.
Total # of Store Interactions: The number of focus stores impacted by the competitors.
# of Unique Competitive Stores: A count of competitors within the Trade Area.
In this example, Costco Wholesale has a Relative Threat Index of 604, the highest pressure of all the focus banners. There are 30 store interactions, and all are unique competitors.
This page shows the details for each focus store and their Account level competitors.
TDLinx: A code assigned by TDLinx.
Account Overview: The focus store name and address and competitors by account, then competitors summed by channel.
Store ACV: All Commodity Volume. It represents total store sales but is expressed in ranges of values in TDLinx and not the specific store sales.
Total Dollars at Risk to Competitor: Refers to the total Focus Store dollar amount at risk between the focus store and competitive account/channel.
Average Competition: Total Dollars at Risk to Competitor divided by Total # of Store Interactions.
Total # of Store Interactions: A count of stores for the competitive account/channel impacting the focus store.
In this example, Costco Wholesale #533 faces the most competitive pressure from Loblaw Companies Ltd. There are 14 stores competing with Costco, and the competitive pressure averages $71,185,252 per competitor.
This report shows a one-line summary for each store selected for analysis and the competitive banners and summary by channel.
TDLinx: A code assigned by TDLinx.
Banner Overview: The store name and address for the focus store, the banner name or summary by channel for competitors.
Store ACV: All Commodity Volume. It represents total store sales but is expressed in ranges of values in TDLinx and not the specific store sales.
Total Dollars at Risk to Competitor: Refers to the total Focus Store dollar amount at risk between the focus store and competitive banner/channel.
Average Competition: Total Dollars at Risk to Competitor divided by Total # of Store Interactions.
Total # of Store Interactions: A count of stores for the competitive banner/channel impacting the focus store.
In this example, continuing with Costco Wholesale #533, Shoppers Drug Mart is the largest competitor, with 8 locations interacting with this location. This Costco location may not be able to compete on the assortment for many OTC categories, but they can promote a price strategy for shared categories like hair care or paper products.