Retail Trade Area Analysis Using the Huff Model

September 6, 2013 – 10:13

_ Summary:

The concept of a retail trade area has been used by analysts and practitioners in retail site evaluation and other market studies for a very long time.In fact, retail trade area analysis and site evaluation are complementary procedures.Retail trade area analysis focuses on locating and describing the target market.The intent of this article is to raise the awareness of the Huff model within the GIS community.


It is much easier to analyze trade areas and produce market profiles using GIS. The majority of GIS software includes functionality for extracting and aggregating data at various levels of geography. As a result, trade area analysis became one of the most popular areas of GIS applications in analyzing business problems. The most common definition of a retail trade area is used for the purpose of this article. According to this definition, a retail trade area is “that area, typically around the store, from which the store derives most of its patronage” (Lea 1998b, p.140).

Retail trade area analysis was a very popular theme during the time Business Geographics magazine was published (1993-2001). A couple dozen articles were written on this subject by researchers and GIS consultants specializing in the retail sector. A variety of techniques on how to delimit and analyze trade areas were discussed, along with their advantages and disadvantages. These techniques range from simple ones, such as an application of rings, to more sophisticated, such as utilizing probabilistic trade area surfaces (Gross 1997, Hooper 1997, Lea 1998a, Peterson 1997, Simmons 1998).

All techniques represent either the spatial monopoly or market penetration approaches to analyzing trade areas (Jones, Simmons 1993). The concentric rings method, drive time/distance polygons or Thiessen (Voronoi) polygons are examples of this type of approach. These methods are easy to conceptualize and use. However, they assume that a store has a monopoly over the area – that all households in the trade area relate to the store and no households outside the trade area visit the store. Once the trade area is delimited geographically as a ring, Thiessen or other type of polygon, it is easy to prepare a market profile by extracting and aggregating data using GIS software. Although the methods representing the spatial monopoly approach are commonly used, they involve a lot of simplification because they do not account for the existence of competing stores. Therefore, they should be utilized only if no better alternatives exist (Lea 1998c).


A retail trade area survey of Austin, Texas
Book (Bureau of Business Research, University of Texas)


Either that or if you have a local MAC store (not the retail chain) in your area, some of those take trade-ins and so forth. Bang for the buck, check the regular Craigs list. a lot of folks with high disposable incomes buy the pro model, play with it a month, then realize it doesn't come with solitaire then they dump it for half price for a Dell. See it out here all the time.


You could open an ebay store
do you have mens jewelry?
i am an independent sales consultant...perhaps i could offer you my services of cold calling and or walk in retail in new york city/new jersey area
reply back perhaps for an email
weekend basis would be willing to work for a non cash basis such as trade for service or some other method of compensation :)

Quicktips: Seasonal creep, chronic returners, and early Halloween  — Reynolds Center
.. to share trends regarding seasonal stores, pop-ups and other vacancy-fillers coming in the weeks ahead), you might contact the organizers and exhibitors from major retail trade shows, to ask about trends in advance orders, industry, shipments and ..

Retail trade and services area survey and report, Fessenden, North Dakota
Book (North Dakota State University)
INTERNATIONAL MONETARY FUND World Economic Outlook, October 1995: A Survey by the Staff of the International Monetar
INTERNATIONAL MONETARY FUND Inflation and Growth in China
Retail trade area analysis for Cordele, Georgia (CBES monograph)
Book (Center for Business and Economic Studies, Small Business Development Center, University of Georgia)

Related posts:

  1. Retail Trade Census
  2. Retail Trade SIC Code
  3. Retail trade Zone study