There are three phases of choosing a location for your retail business: selection of a city, choice of an area or type of location within a city, and identification of a specific site. … Total retail trade potential for different lines of trade. Number and size of competition. Quality and aggressiveness of competition.

What factors do retailers consider when deciding on a particular site?

• Connectivity and ease of traffic flow: These are the two important issues that a retailer must consider while selecting a site. …
• Parking facility: ADVERTISEMENTS: …
• Cost effectiveness: …
• Presence of competitors:

How do retailers determine the trade area for a store?

Retailers typically have solid data to map out the trade area because customer transaction records are available from marketing analytics firms and other sources. The data comes from point-of-sale (POS) data and other means like traffic studies (canvassing parking lots to check license plates).

Why do retailers prefer different locations?

A well-located store also makes supply and distribution easier. Location can influence a retailer’s ability to market itself, and to deal with the competition it faces from other businesses.

How different factors affect the choice of market area and store locations?

• Demographic Characteristics. Demography is the study of population characteristics that are used to describe consumers. …
• Economic Characteristics. …
• Cultural Characteristics. …
• Demand. …
• Competition. …
• Infrastructure.

Why is trade area analysis and site selection important in choosing a store location?

Related Content. Defining a downtown or business district’s trade area is an important first step in any market analysis. This step is crucial because it defines the boundaries that will serve as the basis for further study. It also helps individual businesses identify opportunities to expand their own trade area.

How do you evaluate a retail location?

1. Median household income.
2. Average age.
3. Family size.
4. Education level.

How does location of a store affect sales?

Store Location decides the footfall it attracts. The number of people entering the store, decides the opportunity for it to sell its products. The potential number of people who can visit a particular store is called its catchment. So a store has to draw footfall from its catchment.

What are the characteristics of the trading area?

the actual boundaries of a trade area are determined by the stores accessibility, natural and physical barriers, and level of competiton. the boundaries are also affected by the type of shopping area and type of the stores.

What are the factors influencing location of store?

• Selection of the area: …
• Choice of the site: …
• Scale of operation: …
• Amount of capital: …
• Decoration of shop: …
• Selection of goods: …
• Source of supply: …
• Sales policy:

Article first time published on

What is retail location decision?

Selection of retail location is a long-term decision. It requires long-term capital investment. Good location is the key element for attracting customers to the outlet. A well-located store makes supply and distribution easier. Locations can help to change customers’ buying habits.

What are the things should be considered in selecting a site location target location?

• Decide on a business location type. …
• Make sure the business location is within your budget. …
• Consider your brand. …
• Think about vendors and suppliers. …
• Find a safe location. …
• Go where there is demand. …
• Think about recruiting efforts. …
• Look for sites with parking options.

What is a trade area map?

Trade area maps describe the characteristics of the area around a store or network of stores. … Trade area maps from Mapping Analytics help you discover where customers come from, understand areas around store or office locations, and predict trade areas for new locations.

What are the three major factors in trading area analysis?

To examine three major factors in trading-area analysis: population characteristics, economic base characteristics, and competition and the level of saturation The best secondary sources for population data are the Census of Population and other publicly available sources.

When using the retailer simply describes the site and trade area characteristics for its most successful stores and attempts to find a site with similar characteristics?

3) Analog Approach: used more so for smaller chain stores and is more of a subjective approach where the retailers describes the site and trade area characteristics for their most successful stores and tries to find a site with similar characteristics.

What decisions are necessary in choosing a general retail location?

• Type of Goods Sold.
• Population and Your Customer.
• Accessibility, Visibility, and Traffic.
• Signage, Zoning, and Planning.
• Competition and Neighbors.
• Location Costs.
• Personal Factors.
• Final Considerations.

What are the retail location strategies for different types of retailers?

• Frequented Spots. A mall space can potentially provide you with quite a bit of foot traffic as people come to malls specifically to walk around and shop. …
• Commercial Building. …
• Office Space. …
• Home Office.

Why is location important in retail management?

Your stores location will ultimately influence the consumers view of your company [brand]. Opening a store in the wrong location will cause your shop to stick out in a bad way. … Studying customer foot traffic, walkways and outside factors all come into play when selecting a store location.

What are the criteria in choosing the right business location?

Analyzing your area, reading about potential customer demographics, and considering where competitors are located are all important aspects to finding and choosing the right location. It’s also important to consider your needs as a business owner before deciding on a location.

What is a location strategy?

Location strategy describes the process companies use to determine where their offices and employees should be located. … A truly comprehensive location strategy analyzes extensive market information and always uses labor data to show companies the cost, availability, and sustainability of labor.

Why we choose that location for business?

Choosing a location for business is all about setting your business up for success. … Your business location sets the tone for your business. It adds to what customers think of your business. The business location determines how well you will do.

What is a market area analysis?

The market area (MA) is the foundation of a feasibility study. The MA represents the geographic area from which you should expect the majority of your residents will move.

How do you do a catchment area analysis?

1. Buffer trade areas – Trade areas defined by a distance around the location(s) under analysis.
2. Walk/drive time trade areas – Trade areas defined by the walk or drive time to the location(s) under analysis.