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Trade area mix and intensity concepts for evaluating retail site alternatives

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Abstract

The article deals with the chain retailer's problem of evaluating retail site alternatives. A conceptual retail sales forecasting model for convenience restaurants is described and supported with an empirical application. Specifically, the model hypothesizes that sales volume variations can be accurately explained by two trade area characteristics: trade area mix and trade area intensity. Both variables were found to be significant in explaining sales volume characteristics of convenience restaurants. The model's overall explanatory power is substantial as indicated by a coefficient of determination of 86.

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Lewison, D.M., Zerbst, R.H. Trade area mix and intensity concepts for evaluating retail site alternatives. Ann Reg Sci 11, 86–96 (1977). https://doi.org/10.1007/BF01287857

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  • DOI: https://doi.org/10.1007/BF01287857

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