Suppose a Spatial Interaction Model is to be developed to help in locating a new retail store that sells a family of specialty foods. The market region to be served already includes 5 other similar retail stores owned by competitors, denoted Store 1 - Store 5. To model the sales for this family of specialty foods, the market region has been divided into 9 geographic areas as shown in the first column of the table below. This table also provides the estimated annual sales of these products from the corresponding region.

Region	Annual Sales (in thousands of dollars)
NW	270
NC	250
NE	360
CW	190
CC	140
CE	300
SW	380
SC	310
SE	300

The travel times (in minutes) between the 9 regions and the 5 existing stores and three possible locations for the new store are shown below. The 5 existing stores are similar and are all deemed to have an attractiveness measure of 2.

Travel Times to Existing Stores

Region	Store 1	Store 2	Store 3	Store 4	Store 5
NW	11.40	42.44	97.65	96.26	60.21
NC	19.24	35.51	84.12	82.86	69.46
NE	29.83	29.68	71.81	70.61	67.27
CW	48.27	44.28	85.88	84.53	25.00
CC	39.56	5.10	50.61	49.20	36.06
CE	61.07	30.02	30.59	29.43	55.90
SW	67.90	42.44	56.89	55.73	11.18
SC	79.31	45.40	26.00	25.02	40.31
SE	101.02	67.94	14.87	16.16	79.06

Three possible locations have been identified for locating the new retail store, and these are denoted Loc 1, Loc 2, and Loc 3. The travel times (in minutes) between the 9 regions and the three possible locations for the new store are shown below. The store to be established at Loc 1, Loc 2 or Loc 3 will not be as large as the existing stores, nor will it have as good parking availability, so the new store is estimated to be about 80% as attractive; hence the new store will have an attractiveness measure of 1.6 (80% of 2.0).

Travel Times to Three New Stores

Region	Loc 1	Loc 2	Loc 3
NW	81.63	43.83	32.02
NC	71.02	40.26	20.62
NE	60.03	35.23	18.03
CW	68.88	40.01	49.24
CC	34.48	5.10	20.00
CE	21.54	31.95	39.05
SW	42.00	36.89	55.90
SC	15.62	42.20	60.21
SE	31.76	67.94	79.06

Build spatial interactions models to estimate the revenue that would be captured by the new store ateach of the three possible locations. (Use three spatial interaction models, where each includes the five existing stores and one of the new stores.)

Which new store location would be best (Loc 1, Loc 2 or Loc 3) and how large is the estimated annual revenue for the new store at that location?

1. Best new store location :

2. Annual revenue for the best new store location