Submitted by: Submitted by oxymoron93
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Category: Business and Industry
Date Submitted: 05/23/2012 11:51 PM
Trade Area Analysis
This section analyzes the size and shape of the trade area for Stevens Point businesses. The trade area defines the boundaries that will serve as the basis for further analysis in this report. The trade area is the geographic region that generates the majority of customers for Stevens Point retail and service businesses. The analysis realizes that different business types have different trade areas. That is, some businesses will draw customers from a greater distance than others. While communities often have multiple trade areas (primary, secondary, convenience, etc.), a single trade area is defined for downtown Stevens Point. The decision to use a single trade area is based on the locations of regional retail centers to the north, west, and east of downtown Stevens Point. In general, the Stevens Point trade area is intended to mirror the overall market area for the community. While tourism can provide an important customer base, local residents of the Stevens Point area provide the greatest spending potential for most business categories. For some convenience businesses, the primary trade area may represent 90 percent of its customers. For destination shopping businesses, the primary trade area may represent less than 50 percent of its customers. For purposes of this market analysis, an overall average of 70 to 75 percent of all customers is used to establish the trade area. In addition to local residents, tourists and visitors represent a sizable market segment for communities like Stevens Point. While many of these customers live outside of the primary trade area, they need to be recognized as an important market segment. Tourists and visitors are attracted to Stevens Point for events such as the Family Fun Fair and Crazy Days. Furthermore, visitors take advantage ...