It's a difficult question that can't be answered unconditionally, but I dare to think about it from the front now.

One of the most frequently asked questions is "How many trade area population do you need?".

All I can say is that it is better to have more than less, and it is one of those questions that cannot be answered unconditionally. It seems that

Also, I don't think this is a problem that can (or should) be decided by store development alone. When I receive questions from people other than store development such as "How many people do I need in the commercial area?"・”, but I remember hearing that there was no point in saying it.

The smaller the required trade area population, the better for store development.This is because the number of locations where you can open stores will increase.

However, those who are responsible for the sales of the store after opening think about the necessary trade area population.

How should we determine the trade area population necessary to fill the gap between the two?

This is an extremely important issue when considering store openings in a market that is expected to shrink, especially in small commercial areas.

The necessary trade area population is not determined only by the location determined by store development, but is a “company-wide problem” that should be considered including what the store offers, sales force, and the power of the company as a whole.

The continuation of this general idea can be found on YouTube "Work channel called store development” will be explained.Please take a listen.

What is necessary to derive the answer to the question "How many people should be around the store?"This is a question that cannot be answered categorically and cannot be answered by store development alone, as it varies depending on the industry and business conditions, but we will explain an example of how to find it using concrete numbers.

  • 00:00 Now is the time when the importance of dealing with small commercial areas is increasing
  • 01:01 Frequently asked questions about the commercial area: "How many people should be around the store?" "How many people should be in the commercial area?"
  • 02:10 How many trade zone populations are needed?How to constantly attract the number of customers required to achieve forecasted sales?
  • 03:40 How to find the “necessary trade area population” and “acquisition rate”
  • 04:15 How to find the necessary “number of new customers” and “retention rate”
  • 04:43 How often do regular customers visit the store?
  • 06:04 Practice with specific numbers: B) How many patrons do you need?how to find
  • 08:28 C) How many new customers do you need?how to find
  • 09:31 D) How many trade area populations are needed to attract 500 customers?how to find
  • 12:25 Summary