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Understanding Your Trade Area: Implications for Retail Analysis

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Publication Number: P2321
View as PDF: P2321.pdf

Defining a town’s trade area is an important first step in developing a strong retail economy. It is the foundation of retail trade analysis, since it helps existing businesses identify ways to expand their markets.

This publication shows a few simple ways to determine the geographic size of a town's trade area. Knowing the trade area lets decision makers do a market analysis of the local area, using important statistics such as number of customers, potential sales, pull factors, and other measures of retail strength.

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