The Retail Promotion Cannibalization Simulator

 Create a retail promotion simulator that helps merchants evaluate whether a discount creates incremental profit or merely shifts purchases from other products or full-price sales.

Let users import product prices, unit costs, historical sales, promotion periods, discounts, and available product relationships.

Build:

  • A promotion margin calculator.

  • A configurable demand scenario model.

  • A basket substitution explorer for related products.

  • A comparison of promoted and non-promoted product performance.

  • A break-even uplift calculator showing how much additional volume is required to offset a discount.

  • A bundle-versus-single-item promotion comparison.

  • A scenario explorer for different discount levels and product combinations.

  • A post-promotion review comparing predictions with actual results.

Clearly separate measured historical relationships from hypothetical substitution assumptions. Do not claim that a promotion caused additional sales without suitable evidence. Show formulas, handle missing costs explicitly, and include sample data for a small convenience store.

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