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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 trainee

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


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

Evaluation of competitor’s stregnth/

Availability of Store Locations

Number and type of locations Zoning restrictions

Access to transportation Costs
Owning versus leasing opportunities


Taxes Minimum wages

Licensing Zoning
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
Census of Population- supplies a wide range of domographic data for all cities and surrounding