A retail gravity model for selecting the optimal store location

Document Type

Conference Proceeding

Publication Date



Retail gravity model, Fashion retailing, supply chain management, Store locational analysis


Fashion retailing is one of the important businesses in Hong Kong. More than 90% of retail sales are made at store, thus, the selection of a store location has become important as the investment in the establishment of store is high due to high rental charges in Hong Kong. In selecting a new store location of fashion retailers, retail site analysis teams often make decisions based on the experience and subjective judgment. The factors they will consider include rents, pedestrian traffic, store affiliation and etc. The cultural traditions of retail location decision making based on only a few variable leads to bias and inaccuracy in forecasting which increases investment risk. In order to enhance the chance to select a good location, this paper employs the 'Retail Gravity Model' to cultivate retail crucial variables, for example, supply chain and operation management, etc that can assist the site selection decisions of fashion retailers in Hong Kong. Additionally, the checklist of store location choice will be provided based on result of the scientific model.

Source Publication

2017 World Transport Convention, "Green and Integrated Development through Innovations", Beijing, 3-6 June, 2017

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