Feature
3. Esri’s shopping center data layer was used to identify and select competitive retail centers: the 14 retail shopping centers located within 15 miles of Hershey, including a 246,000-square-foot outlet center within a quarter mile of Chocolate Avenue. As with Hershey Square, the GLA field was identified as the attractiveness factor for the competitive centers in the above formula. 4. Business Analyst calculated the linear distance from each “consumer” to the proposed location of Hershey Square, and to each of the 14 competitive retail centers. These calculations are represented on the right side of the divisor in the formula. 5. Linear distance between consumers and shopping center locations represents only one distance consideration in the Huff model formula. The distance a consumer is willing to travel to shop is also influenced by other considerations such as the type of goods sought. For instance, consumers would be more likely to drive a longer distance to shop for furniture than to shop for groceries. The Huff model provides a distance decay constraint that can be entered in the model account for this factor. The appropriate constraint is entered as an exponent between 1 and 2. A smaller exponent represents shopping activities for which consumers will travel farther, such as furniture purchases. Since
the Hershey model is based on total retail spending and represents a variety of types of retail goods, an exponent of 1.5 was used in the model assumptions. Results: Local Market Defined Based on these inputs and calculations, the Huff model provided spending probabilities by block group that allowed the Delta team to identify a defensible trade area. This resulted in a conceptual design and scale for downtown Hershey that was driven primarily by the local market. While the Huff model requires the user to have at least a conceptual understanding of how the model works and how various input components impact the model output, Business Analyst’s user-friendly interface allowed the Delta team to access precise analytic capability that would otherwise be outside the realm of its expertise. “Before discovering the Huff model operations in Business Analyst, I tried to do the equation on paper,” laughed Tollett. “All the variables that need to be plugged into the formula ate way too much time. Performing the operation in an integrated environment made all the difference in getting the quick and accurate results we needed.”
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ArcUser Summer 2010 33