Case Study 2

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Case Study 2 Adapting Store Size to the Type of Location Submitted By : Marie Jo Aguzar 87/100 Under what conditions should a large box store retailer like a Best Buy Pursue a small­store strategy? As U.S. chain retailers absorb the lessons of the great recession, many big­box chains have started to shrink average store footprints to reflect the growing importance of multi­channel shopping, adapt to urban settings and recognize the need to optimize investment. I suspect you got this from research ­ so it’s always good to put from where ­both a brief note here and then in a bibliography page. Wal­Mart Stores Inc., Target Corp., Best Buy Co. Inc. and Gap Inc., among others, all have small concepts in the works or are…show more content…
Sometimes a community may have more than one trade area (such as a convenience and a destination trade area). Knowing the size and shape of each trade area is extremely important because its boundaries allow for measurement of the number of potential customers, their demographics, and their spending potential. This information provides valuable insight into your community’s customer base and allows you to calculate demand for stores, products, and services. http://fyi.uwex.edu/downtown­market­analysis/understanding­the­market/trade­area­analysis/ The population characteristics of a small store’s trading area could come from that of a larger store when: ∙ The small store can be located in an urban or rural area, whereas larger stores are in suburban locations The small store appeals to different consumers by virtue of their edited selection of merchandise The key to this question is recognizing that a smaller format store will steal some customers away from the larger format store. But it should make up for it by getting new customers. Discuss the concept of trading­area overlap from the perspective of small versus large store formats. Traiding area overlap occurs when the trading areas of stores in different locations encroach upon one another. In the overlap area, the same customers are served by both stores. Many retailers utilize geographic information system (GIS) software to

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