ABSTRACT
In this chapter, we discuss in detail the different analytical steps involved in each of the three phases of a retail market study, introduced in the previous chapter. The discussion starts with Phase I, which focuses particularly on analytical techniques that can be used to estimate unrealized sales potential and on the strategic implications of such estimates. The discussion of Phase II focuses on the spatial behavior of consumers and its implications in terms of the distances that consumers may be willing to travel for purchasing different types of retail goods and services. Spatial demand and supply variables that need to be considered when evaluating a specific site and location for a retail development are also discussed. The discussion of Phase III focuses on techniques for defining the project’s trade area, analyzing the competition, identifying consumer shopping patterns, and evaluating the development’s potential. The discussion of the latter stage elaborates on the estimation of the project’s expected capture rate, its sales potential by product line, supportable square footage, and achievable retail space rents.
