Trade area analysis has its focus on locating and describing the target market. Analysing the trade area is important to determine the reach of existing and new store locations and if sufficient target customers reside within the trade area. To analyse trade areas, the use of Location Intelligence is essential to effectively model physical trade areas. The accuracy of these models will depend on the number of variables being considered, like customer location, competitors and consumer spend or attitudinal data.
Retail is all about relevance: right product, right place, right time, and right price. Of all these factors, it is location which is most fundamental to the success of a bricks and mortar retail business and the use of location intelligence to drive decision making can be the difference between retail success and failure.