RMG 200 Chapter Notes - Chapter 5: Luxury Vehicle, Convenience Store, Retail Park

• School: Ryerson University
• Department: Retail Management
• Course: RMG 200
• Professor: Ken Wong

Document Summary

Chapter 5 retail locations strategy trade area decisions and site assessment. Factors affecting the demand for a region or trade area. The best regions and trade areas are those that generate the highest demand or sales for a retailer. Although the regional analysis is distinct from the trade area analysis, the factors that make them attractive are the same. One would expect that a retailer should choose the one best location in a given trade area. However, most chains plan to go into an area with a network of stores promotion and distribution economies of scale can be achieved with multiple locations. Answer: who owns the stores: company owned stores: the objective is to maximize profits for the entire chain. If a store is overcrowded, build another one to control the market. It is better to have 2 stores making mil in profit than one only making. : franchise operations: each individual wants to maximize his or her profits.