PHYSICS 102 Lecture 7:
Document Summary
Summary chapter 8 retail site location. Evaluating areas for locations and determining the number of stores in an area. Areas that retailers consider for locating stores: countries, areas in country, cities, areas in cities. Metropolitan statistical area (msa): a core urban area containing a population of more than. The best areas for locating stores are those that generate the highest long-term profits for a retailer factors affecting long-term profit generated by stores are: economic considerations. Examine area"s level and growth of population and employment. Large, fully employed population high purchasing power and high levels of retail sales: determine how long growth will continue and how it will affect demand. Determine which areas are growing quickly and why: competition. The level of competition in an area affects the demand for a retailer"s merchandize. Underserved urban locations offer some strong attractions: minimal competition levels; large, readily accessible labor force; surrounding market of customers with high disposable incomes: strategic fit with target market.
