Are Smaller and Faster

Better?
A presentation by:
Nishi Batra
Priyanshu Ranjan
How is trading-area analysis different for a small
store than a large store? Explain your answer.

• A small store is likely to have a smaller trading area than a large store.
• When compared to a larger store, a smaller store is likely to have a more constrained
sales floor space
• The retail space within a small store will not be as expansive as that of a huge store
How should a food-delivery service such as AmazonFresh define its trading area? Is it
going to be bigger or smaller than a traditional supermarket’s trading area? Why?

Trading area would often be in cities that are Bigger than traditional supermarket trading
densely populated like the metros and tier 1 area
cities
Pros and cons of locating in a mixed-use
center

Pros
• Convivence to customers (Reduces
travel time and cost)
• Offer wide range of products
• Increased Exposure (Increased traffic
and visibility)
• Helps build retailers long term
relationships with customers
(Increases Customer Loyality)
• Extended hours of operation
Cons
• Vulnerable to competition
• High reliance on the area for sales
• Small trading area
• Uneven sales hours
• Possibility of conflict between
different uses within a mix use
center
What type of retail location is best suited to
a small store? Why?

Isolated Convenience for customers( easy access and parking)

Stores Modest occupancy costs

would be
best Fewer restriction on number of operating hours or merchandise as
suited for imposed in shopping centers

the Lower Rent

following Helps to avoid competition

reasons: