1. Chapter 9

2. To Demonstrate Importance of Store Location To Discuss the Concept of Trading Area To Show How Trading Areas Can Be Delineated To Examine Factors in Trading Area Analysis

3. Good Location CAN Overcome Mediocre Strategy Mix Poor Location Difficult to Overcome Requires Extensive Decision Making Least Flexible Element of Strategy Mix

4. Loyal Customers and Employees May Be Lost New Location May Not Have Same Characteristics Store Fixtures and Renovations May Not Transfer

5. Evaluate Alternate Geographic (Trading) Areas Select General Location Analyze Alternate Sites Determine Type of Location

6. Consumer Characteristics Detailed Promotional Activity Focus Determined Ascertain Overall Net Increase Proper Number of Stores Calculated Geographic Weaknesses Highlighted

7. Total Revised Sales Total Sales Total Previous Sales of Existing Store of New Store of Existing Store +-

9. Trading Area by Specific Demographics Derive Sales Potential Effect of New Location on Existing

10. Primary Secondary Fringe (Tertiary)

12. Not Concentric Two Stores in Same Area Can Have Different Trading Areas (TA)

13. Destination Parasite

14. Store Size Competitors’ Locations New Stores Residential Housing Patterns Travel or Driving Time Promotion

16. By Geographic Location Shopping Frequency Average Dollar Purchases Concentration of Store’s Credit Card

17. Trend Analysis Analog Model Regression Model Gravity Model –Reilly’s Law of Retail Gravitation –Huffs Law of Shopper Attraction

18. By Geographic Location Shopping Frequency Average Dollar Purchases Concentration of Store’s Credit Card

19. Population –Census –Survey of Buying Power Effective Buying Index (EBI) Buying Power Index (BPI) Economic Base

20. Understored Saturated Overstored

21. Number of People Per Establishment Average Sales –Store –Category –Store Per Capita or Household –Per Square Foot –Per Sales Person

22. The Importance of Store Location and the Process of Choosing a Location The Concept of Trading Area and Its Components How Trading Areas May Be Delineated for Existing and New Stores Three Major Factors in Trading Area Analysis: –Population Characteristics –Economic Base Characteristics –Competition and Level of Saturation

23. Questions?