The document outlines key factors to consider when evaluating retail trading areas, including population characteristics like size, income, education, and trends; availability of labor and suppliers; promotion opportunities through media; the economic base of dominant industries and diversification; competitive situation of existing stores; availability of suitable store locations; and relevant regulations. Analyzing these elements is important for trading area selection and market evaluation.
The document outlines key factors to consider when evaluating retail trading areas, including population characteristics like size, income, education, and trends; availability of labor and suppliers; promotion opportunities through media; the economic base of dominant industries and diversification; competitive situation of existing stores; availability of suitable store locations; and relevant regulations. Analyzing these elements is important for trading area selection and market evaluation.
The document outlines key factors to consider when evaluating retail trading areas, including population characteristics like size, income, education, and trends; availability of labor and suppliers; promotion opportunities through media; the economic base of dominant industries and diversification; competitive situation of existing stores; availability of suitable store locations; and relevant regulations. Analyzing these elements is important for trading area selection and market evaluation.
Chief Factors to Consider in Evaluating Retail Trading Areas
Population Size and Characteristics
Total size and density Total disposable income
Age distribution Per-capita disposable income Average educational level Occupation distribution Percentage of residents owning homes Trends Availability of Labor
Management Management trainee Clerical
Closeness to Sources of Supply
Delivery costs Number of manufacturers and wholesalers
Timeless Availability and reliability of product lilnes
Promotion Facilities
Availability and frequency of media
Costs Waste
Economic Base
Dominant industry Freedom from economic and seasonal fluctuations
Extent of diversification Availability of credit and financial facilities Growth projections
Competitive Situation
Number and size of existing Level of saturation
Competitors Evaluation of competitors stregnth/ weakness
Availability of Store Locations
Number and type of locations Zoning restrictions
Access to transportation Costs Owning versus leasing opportunities
Regulations
Taxes Minimum wages
Licensing Zoning Operations Economic base- is an areas industrial and commercial structure- companies and industries that residents depend on to earn a living.
Analyzing Retail Trade Areas
3 Elements in Trading Area Selection
1. Characteristics of the Population
Gained from secondary sources Offers data about the population size, number of households, income distribution, and more Census of Population- supplies a wide range of domographic data for all cities and surrounding vicinities.