2. Critical Decision
• Helps the Retailer to suceed if the
strategy mix is appropiate.
• Least Flexible Elements(High Risk
Decision, Shoppers get irritated)
• Store Inherits all the character from its
location
3. Process……
Current and Future of the area
• Evaluate geographic areas in terms of
residents, offices, commercial settlements
and existing retailers
• Determine the type of site
• Evaluate all the alternatives
4. Trade Area Analysis
• Primary Zone ( Area Closest to the Zone ,
posses high density, and highest per
capita sales)
• Secondary Zone (widely dispersed)
• Tertiary (Occasional Shoppers )
5. Factors to be considered …..
• Geographical Area :Infrastructure,
Economic activities, and housing
patterns , density of population, source of
income, housing facilites, Physical
barriers, economic barriers, psychological
barriers, racial barriers , other cost..)
6. Factors to be considered
• Competition : Absence and presence
(number size , distribution, rate of new store
opening , cycles and levels of saturation)
Saturated Area
Understored trade area
Overstored area
7. Factors…..
• Shoppers profile
• Analyze the site..
Store type
Unplanned disrict
Planned District
Economies of scale
Legal isssues(zoning,rent,taxation
