Abercrombie & Fitch opens a new store 20 km away from your house.You really like their clothes so you're happy to drive 20 km to shop there.Then another new Abercrombie & Fitch opens up right by your house so you don't have to drive as far to shop there.The A&F that was 20 km away has essentially lost a repeat customer-you-and likely others in your neighbourhood.What is the first A&F store likely experiencing?
A) inadequate demand
B) demarketing
C) loss of synergy
D) cannibalization

Question

Quizplus · Accepted Answer

The first A&F store is likely experiencing cannibalization, as the opening of a new store closer to the customer's house has resulted in a loss of demand for the farther away store. The new store is essentially taking sales away from the original store.

Abercrombie & Fitch Opens a New Store 20 Km Away