This document discusses factors to consider when assessing potential retail sites. It outlines key types of retail stores and how convenience versus comparison shopping affects trade areas. Proximity to customers, traffic patterns, demographics, and competition influence a site's potential success. The assessment examines population, traffic counts, directional flow, and competing retail options to determine if a site's characteristics can attract viable operations.
2. About this presentation
• Provide an overview of the site
assessment process for a retail
store or shopping center
• At its conclusion you will have a
basic understanding of the
relationships between site,
population, traffic flow and trade
areas
3. Basic Types of Retail Stores
• Convenience Stores Convenience Shoppers
• Drug Store
• Drug Stores • Super Markets
• Super Markets Comparison Shoppers
• Fashion
• Discount Stores • Image
• Department Stores • Lifestyle
4. Factors that impact success
Retail Operations & Travel Time
• Convenience Stores
• Drug Stores
• Super Markets
• Discount Stores
• Department Stores
1 2 3 4 5
Miles from Store
5. Trade Areas & Sales Generation
70-80% of a stores sales comes from
the trade area
6. Customer Considerations
• THINK LIKE A CONSUMER
• Frequency of Visits
• Size & Expense of Purchases
• Uniqueness of Retailers
• PERCEPTIONS OF CUSTOMERS
7. Relationships
• The more frequent and smaller the
purchases, the smaller the trade area
• The less frequent and larger the
purchases, the larger the trade area
8. Demographics & Psychographics
• Changes in demographics,
educational levels, culture, and
household income also define market
areas
• They sometimes act as “barriers”
9. Traffic Flow and Traffic Counts
In relationship to the site:
• Is traffic moving toward the site,
• The direction of traffic away from it or through it?
• Frequency of trips • How many trips a day pass the
site?
• 24-hour traffic count • When does the traffic flow?
• Where is the traffic going?
10. Drive Times & Perceived Drive Times
Same stores, offering the same products
2-miles- 10-minutes 2-miles- 10-minutes
Direction to work
Perceived drive time=
1-mile & 3 minutes
11. Traffic Flow & Count
Freeway N
River
10,000 15,000 20,000 30,000 Freeway
Downtown
Site
10,000 15,000 20,000 30,000
12. Competing Trade Areas
• Sister stores are the largest competition
• Size of sister store
• Presence and amount of other retail offerings
Retail Operation
Stand Alone Retail Center Downtown
Difficult Site Number & size of retail What other shops are there?
outlets Are there anchor shops
present
13. Sister Stores & Competition
The size of the sister
store and its adjoining
retail offerings will
dictate the size and
success of the market
area
14. Final Consideration
Is the. . .
– Population, its characteristics
– Traffic Count, flow and direction strong
enough to attract viable retail operations
?
