The Huff Model is a spatial interaction model that calculates gravity-based probabilities of consumers at each origin location patronizing each store in the store dataset. From these probabilities, sales potential can be calculated for each origin location based on disposable income, population, or other variables. The probability values at each origin location can optionally be used to generate probability surfaces and market areas for each store in the study area. NOTE: This tool requires an ArcInfo license.
As a gravity model, the Huff Model depends heavily on the calculation of distance. This tool can use two conceptualizations of distance - traditional Euclidean (straight-line) distance as well as travel time along a street network. To account for differences in the attractiveness of a store relative to other stores, a measure of store utility such as sales volume, number of products in inventory, square footage of sales floor, store parcel size, or gross leasable area is used in conjunction with the distance measure. Potential store locations can also be input into the model to determine new sales potential as well as the probabilities of consumers patronizing the new store instead of other stores.
The Huff Model can be used:
To delineate probability-based markets for store locations in the study area
To model the economic impact of adding new competitive store locations
To forecast areas of high and low sales potential, which can guide new store location placement or refined marketing or advertising initiatives
