Trading area analysis is an important process for retailers to choose store locations. A trading area is a geographic area containing customers for a particular firm. Analyzing trading areas involves examining population characteristics, the local economic base, and competition levels. Retailers use tools like GIS software and computer models to delineate and evaluate current and potential trading areas based on these key factors.

1. Chapter 9 Trading-Area Analysis RETAIL MANAGEMENT: A STRATEGIC APPROACH, 9th Edition BERMAN EVANS

5. Figure 9.1 Importance of Location to Esprit

6. Choosing a Store Location Step 1: Evaluate alternate geographic (trading) areas in terms of residents and existing retailers Step 3: Select the location type Step 2: Determine whether to locate as an isolated store or in a planned shopping center Step 4: Analyze alternate sites contained in the specific retail location type

9. Figure 9.2 The Trading Areas of Current and Proposed Outlets

11. Figure 9.3a The TIGER Map Service

12. Figure 9.3b The TIGER Map Service

13. Figure 9.4 GIS Software in Action - A

14. Figure 9.4 GIS Software in Action - B

16. Figure 9.5 The Segments of a Trading Area

17. Figure 9.6 Delineating Trading-Area Segments

20. Trading Areas and Store Type Largest TRADING AREAS Smallest Department stores Supermarkets Apparel stores Gift stores Convenience stores

21. Figure 9.7 Carrefour Shanghai

23. Computerized Trading-Area Analysis Models Analog Model Regression Model Gravity Model

34. Figure 9.8 Analyzing Retail Trading Areas

35. Elements in Trading-Area Selection Population Characteristics Economic Base Characteristics Nature and Saturation of Competition

36. Figure 9.9 The Census Tracts of Long Beach, NY

37. Table 9.3 Selected Population Statistics for Trading Areas A and B