Promotional Cannibalization Analysis — GreenLeaf Grocery

GreenLeaf Grocery is a mid-size regional grocery chain operating 14 stores across the Pacific Northwest. They run weekly promotional cycles on key product categories and have been increasing promotional frequency over the past year to compete with discounters.

The VP of Merchandising has noticed that despite running more promotions than ever — roughly 30% of all store-category-weeks now feature a discount — total category profit has been flat or declining in several key categories.