Trading Area Analysis In Retailing

Trade area analysis is a primary analytic service performed by mapping analytics.

Trading area analysis in retailing. Analyzing trade area 6. Updated for 2019 3 trade area analysis sales retention is an indirect measure of locally available goods and services assuming people buy locally if possible. This approach can work for a quick analysis or for communities that are located in fairly uniform geography. Simple methods of trade area definition.

We have the people experience tools and data required to perform sophisticated multi site and multi region trade area analyses. To begin the evaluation of retail opportunities the market analysis study should be done to understand demand and supply of major catego ries to determine market potential. For example if you are defining a trade area for a small community surrounded by similarly sized communities that are all spaced 20 miles from one another a simple ring of 10 miles may be a reasonable trade area for analysis. A trade area is the furthest distance that consumers are willing to travel to buy goods and services.

Trade area analysis can be used for a variety of reasons. Chapter 9 trading area analysis retail management. Retail trade area analysis focuses on locating and describing the target market. A strategic approach 9th edition berman evans slideshare uses cookies to improve functionality and performance and to provide you with relevant advertising.

If there isn t any existing data available retailers. A trade area analysis of wisconsin retail and service markets. We also provide applications software data and training to help you develop in house trade area analysis capability. Issues covered under trade area analysis.

The term trade area is often interchangeable with trading area. Evaluation of retail trade area. In site evaluation trade area analysis is combined with many operational requirements of the retail chain jones simmons 1993. Trade area analysis is known as one of the most critical elements in retail strategic planning process.

While measurement of actual sales is relatively easy measurement of the sales potential presents some. This knowledge is critical for both marketing and merchandising purposes as well as for choosing new retail locations. Selecting store location is a long term and non repetitive decision that involves following issues. I mapping of existing customers with regard to the present stores.

It forces a business to commit itself to a course in the absence of vital information such as store patronage local market opportunities competing businesses and barriers that would dissuade consumers from visiting the site. Site selection merchandising choices target marketing and competitive analysis.