| In 1931 a gentleman name William J. Reilly wrote a retail | | | | influence people at its point of impact...at its location. |
| axiom that is still used today for market planning of | | | | The farther you move from your store, the smaller its |
| retail stores. It is commonly known as Reilly's Law of | | | | rings of influence become. But hold on, the problem is |
| Retail Gravitation and was inspired by Newton's law of | | | | further complicated by every other rock that is being |
| Gravitation which stated "two bodies attract each | | | | thrown into your pond...those rocks are your |
| other with a force that is proportional to the product of | | | | competitors and their ring disrupt yours. |
| their masses and inversely proportional to the square | | | | OK let's move back to gravity and you should now |
| of the distance between them." Reilly's formula is used | | | | understand why the further you move from your store |
| to predict the likely division between two trade centers | | | | the less powerful its gravitational pull. This knowledge |
| at which shoppers will go one way or the other. | | | | can really help you when you are formulating your |
| Reilly recognized that trade centers produce | | | | store's advertising campaign. Because your store's |
| gravitational pull. Further he realized that bigger trade | | | | power to influence is greatest at its center it makes |
| centers had more mass and therefore, as stated in | | | | sense to concentrate a sizable portion of your |
| Newton's Law, more gravity. Here's a new scoop, | | | | advertising budget there. There are good |
| though. Your store produces a gravitational field as | | | | cost-effective programs out there to help you |
| well. The gravitation that your store produces is based | | | | accomplish this. |
| on a number of elements, not the least of which is its | | | | Remember that the further you move from your |
| size. Knowing this fact can aid you in the management | | | | store's center as regards advertising the stronger your |
| of your business. Let me give you a couple of | | | | concessions have to be. For instance, if a car dealer |
| examples of what I mean. | | | | offered me a deal that was $200 cheaper than the |
| Let's set gravitation aside for a moment. We'll move | | | | guy across the street did, I would, no doubt, walk |
| back to it in a moment and hopefully you'll follow the | | | | across the street and take advantage of the better |
| connections. If you were to throw a rock in a pond the | | | | price. Both of these car dealerships would exert on |
| resulting impact would produce concentric rings of | | | | me similar levels of gravitational pull. However if a |
| waves. Stop and visualize that for a moment and you | | | | dealer 2 states away offered me a deal that was |
| will notice that the waves become smaller and smaller | | | | even $350 less, I would not go. I would not buy. I would |
| as they depart the center of the impact. Now think of | | | | not be within the gravitational influence of that dealer. |
| that rock as your store (no I don't mean its going under | | | | Knowing more about retail gravitation can make you a |
| :) ). Your store has the greatest power to attract and | | | | more informed and better store manager. |