“Your SAM™ projections are only as accurate as your input outlet data.”

SAM™

SAM™ is a gravity/distance decay sales projection model that evaluates the performance of each retail outlet and projects sales in a variety of scenarios. Once the outlet data from FuelFacts is complete, there are only a few simple steps to project sales for your site!

Not only is SAM™ powerfully portable, but SAM™ also has full disclosure of the levers allowing the analyst to make changes in the trade area demographics or any traits of any of the competition. This lets the analyst apply their own understanding of the trade area and make adjustments as changes occur. Not only can your potential site be fully quantified today, but in the future as well.

How SAM Works

SAM™ is a gravity/distance decay model that evaluates the performance of each retail outlet and projects sales on a new or revised site by the redistribution of sales within any trading area. This performance indicator (Score) is based on simultaneous consideration of distance (between consumers homes), competition and pulling power (trade area reach). SAM™ expects the shoppers to gravitate to an outlet with increasing frequency the nearer it is to their homes and the higher the Score is relative to the competition.

This type of Gravity modeling was first introduced by SuperValu Foods in the 60’s when they developed a model known as S.L.A.S.H. Based on Reilly’s law of retail gravitation, certain important dynamics of shopping behaviors were described which related shopping attractiveness to store size and most importantly distance from the consumer. David Huff and Larry Blue furthered the work of Reilly and adapted this principle into a probability equation, which opened the door for gravity modeling to become what it is today.

SAM™ has been developed in part from this model as a hybrid with adaptations to fit Gasoline/Convenience retail shopping behavior. SAM™ uses Traffic Patterns, Site Characteristics, Location Characteristics, Operational Characteristics and distance from the consumer.

With the advent of the Hypermarkets and the variety of incentive offers entering into the retail fueling industry, it became apparent that a format was needed to apply custom reward and loyalty programs to our modeling. Secondary sites were now having a great impact on many trade areas using host couponing and reward programs to attract consumers to the back lot of the Hypermarket or Supermarket.

From this, one of the cornerstones of SAM™, the trade area reach logic was developed. This term, also known as pulling power, is automatically adjusted based on a variety of characteristics specific for Gasoline and Convenience retailing. Depending on the variable, and the weight it is given, the impact on the performance of the outlet can be determined. As part of SAM™ our end users can develop their own custom reach around their own specific merchandising program, with our easy to use input template.

SAM™ is able to evaluate the reach, and model a site, based on the host store redemption coupons.