LexiconExpansion
Cannibalization rate
نسبة المبيعات المنقولة
Definition
The cannibalization rate is the share of a new unit's sales that would otherwise have happened at the group's existing units. It is estimated before every lease from the group's own delivery, app and loyalty data, then re-measured at months 3 and 6 after opening; the measured rate replaces the estimate in the next site decision.
In plain words
How much of a new branch's sales come from customers who already bought from you at a nearby branch.
Saudi usage
- At Monsha'at: المنافسة الذاتية، وأحيانًا «الالتهام الذاتي» (opens in a new tab) Accessed
Also searched as
- sales cannibalization
- cannibalisation
- store cannibalization
- sister-branch cannibalization
- نسبة المبيعات المنقولة
Try it on your numbers
The Branch Gate applies this rule before you sign the next branch lease: five numbers about the site and one of three verdicts, sign, sign with conditions, or not yet.
Formula
Cannibalization rate = New unit's sales that would have happened at existing units ÷ New unit's sales
Where it is used
In the Doctrine and the Playbook
- Doctrine §2 · Definitions
- Doctrine §3 · Why ad-hoc growth fails in Saudi multi-branch groups · Failure mode 1
- Playbook §2 · Gate 2: Site selection and catchment
- Playbook §2 · Gate 4: Satiety and cannibalization within a city
In the Channel Ledger
In Beneath Marketing
Related terms
How to cite this definition
Alhajj, S. (2026). “Cannibalization rate”. In The Revenue Engineering Lexicon, version 1.0. Riyadh. https://seiflden.com/lexicon/cannibalization-rate/