Impacts of a retail co. HQ, warehse, and store


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    IMPLAN Support
    Robin, Thank you for your post. A couple of things: 1. The spending pattern for retail probably includes some payments to a home office, but home office or warehouse employees ideally should be modeled in their own Sectors, rather than in the retail Sector because the purchases to operate a retail environment will differ somewhat from warehousing (Sector 400) and from that of home office/corporate operations (Sector 451). Making these splits will likely also help some with the view to the overestimation of sales as the ratio of Employee Compensation to Output will be different in all these Sectors. If you make the splits across types of retailer activity as described above and you want to avoid the issue of the retailer making payment to Sector 451 above your modeled Sector 451 values you can certainly do this with Analysis-by-Parts. 2. We also recommend starting the sales estimation from compensation when that data is available. This might also help the sales estimation, if the adjustment above can be made. 3. It might also be worth mentioning that if you are doing all of these analyses in a single year’s Model then only the effects of deflation are being accounted for, not the drastic changes in the economy over that period of time. For consistency, you may want to consider using time series data. 4. Likewise, check that the employment and Employee Compensation values being entered coincide with the appropriate dollar year for the year of the activity being modeled, as this could also affect the sales estimations. In regards to summing these impact values, all values but Employment can be summed to determine a total impact over X years, but all summed values need to be in the same dollar year so that like units are combined. Hopefully this helps! -IMPLAN Support
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