RMG 200 Chapter Notes - Chapter 5: Costco, General Idea, Urban Decay
22 Oct 2017
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Chapter 5: retail location strategy- trade area decisions and site assessment. Exhibit 5 1 breaks the location decision into four levels: country, region, trade area, and specific site. The country is a decision of international expansion, which will be discussed in chapter 7. A region refers to a part of the country, a particular city, or a census metropolitan area (cma). A trade area is the geographic area encompassing most of the customers who would patronize a specific retail site, and that accounts for the majority of the store"s sales and customers. A trade area may be part of a city, or it can extend beyond the city"s boundaries, depending on the type of store and the density of potential customers surrounding it. For example, the best locations for a 7-eleven convenience store are not the best locations for a category specialist such as a best. In making store location decisions, retailers must examine all four levels simultaneously.
