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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 competitor’s 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 area’s 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.