Arming the field with a simple and flexible tool with this sophisticated
cannibalization approach built in will allow the organization to expand the reach of its assortment efforts to more retailers, increasing its impact on market share.
"Clearly when there is a lot of
cannibalization those projects will have an opportunity to fall in priority versus others that don't have that same impact," Wal-Mart chief financial officer Tom Schoewe said at the retailer's analyst meeting in late October.
"And I think the potential for
cannibalization is even greater with Elm Street and Pottery Barn.
Same-store volume was flat, with Giant management citing a general softening of retail sales in the chain's markets, as well as the
cannibalization effect of four Giant combos that opened between November 1995 and January of this year.
What about
cannibalization? "We expect to see a 10%
cannibalization rate by the end of 1996 on the existing OTC antacids," says Kondraske.
"Some of the growth in LCD monitors is attributable to
cannibalization of the remaining CRT monitor base as well as to cutthroat pricing," said Rhoda Alexander, director of monitors and sustainable displays at iSuppli.
"Additionally, over time, we expect our new capital efficiency model to reduce the impact of
cannibalization."
There may be some
cannibalization of the Revlon [curling irons]," said Smith, adding that was a danger in a mature category like curling irons.
Poor same-store sales due to the opening of outlets by competitors and
cannibalization of sales by F&M's own units affected much of the chain drug retailer's store base in the area.
The blame was put on bad weather, continued deflation, tougher competition and
cannibalization of warehouses.
Spak contends that Model 3 is having a greater
cannibalization effect than was previously assumed and further points to the rising competition and reduced tax credit incentives weighing further on sales.
But by the time of the annual shareholders' meeting in early June weak same-store sales growth had clearly spurred reconsideration of the strategy, which analysts had questioned because of the resulting
cannibalization of same-store sales as new units filled in established markets.
