A competitive factor that reduces a product's sales, such as the debut of a competing brand.
The diminishing of a product's sales or potential sales due to competitive factors such as the introduction of another, competing brand, i.e., rather than bringing in additional sales dollars, some of those sales are split between the old and the new item.
A reduction in sales volume, sales revenue, or market share of an existing store location as a result of the introduction of a new store by the same company within or in close proximity to the trade area of the original store. In some cases, cannibalization is used generically to describe the negative impact of the introduction of ANY store, company owned or competitor, on a particular store. Applies to: Trade Area Analysis, Site Selection