cannibalize business definition

To suffer a sales loss in a product or outlet because of the introduction of a similar product or the opening of a new outlet. For example, a new Wal-Mart will experience some sales that are cannibalized from other, nearby Wal-Mart stores that lose sales to the new store. The introduction of a new flavor of a soft drink will almost certainly cannibalize sales from other flavors of the same brand already being offered.