Abstract
The opening of a new establishment is a critical factor for firms in the
retail sector. For this reason, it is crucial to perform a solid analysis of
the possible locations for new store openings. This paper presents the
development of a methodology for the process of selecting a retail site
location that combines geographic information systems (GIS) and the
analytical hierarchy process (AHP). First, we conduct an analysis of
geodemand, which is used to locate the clients of a product or service.
Second, geocompetition is analyzed, which means spatially locating
the firms competition. Third, the possible commercial sites are determined
by combining the results of the two previous steps, together with
the use of kernel density analysis. Finally, depending on the resources
available to the firm, multi-criteria decision models are used to help
select the best location from among the possibilities identified in the
previous analysis steps. The AHP methodology shows that the success
factors for a supermarket are related to its location and competition. To
demonstrate its practical applications, the proposed retail site location
decision process was applied in the Spanish city of Murcia to decide on
the location for a new supermarket opening. The results obtained also
included sales forecasts. It was possible because of the inclusion of an
existing supermarket in the AHP process. Therefore, this methodology
is an application of Operational Research in agribusiness.
