A Review of Sales Forecasting Models Most Commonly Applied in Retail Site Evaluation

Reviews the three sales forecasting models most commonly applied in retail site evaluation: multiple regression analysis; multiple discriminant analysis; gravity models. Discusses the important issues involved in the development and application of these methods – including their respective strengths and weaknesses. Key points are that there is no “black box” method and that in the real world of retailing the methods reduce, but do not remove, the need for practical, subjective analysis.