Explain steps involved in choosing a retail location and methods of evaluating a trading area.
Answers
the return on existing investments, and its established economic value. It determines whether or not the business’ entire financial strength and credit rating is improving or getting worse. This kind of audit also assesses a business’
Selection of Site
Government demographic figures can be used by retailers to identify dense locations. Business owners can get data from the US Office of Management and Budget based on a list of core based statistical areas (CBSA), which are urban enclaves with a population of at least 10,000.
Financial Situation
Additionally, local or state governments may provide infrastructure grants, cash grants, utility rebates, tax credits, tax exemptions, and credits for training. Employment patterns in the area should also be taken into account.
Competition
The compatibility of your nearby stores and how close you are to your rivals are crucial considerations. In our clothing store example, if the dollar store's customer is different from ours, we might not necessarily want to be next door to it.
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