Step 1- Review market areas
This portion of the project analyzes two market conditions. The first map shows the market areas around both hypothetical stores representing the area responsible for 60% of all sales. This also contained another polygon surrounding the 60% area showing the area of 80% of the sales. It was deemed that the most important measure was the concentration of sales closest to the book stores, so only the 60% area is shown. The household income and the Book Lover Club members are also shown.The second map shows the area around each store showing driving times to the stores for 1 minute and 3 minutes. After reviewing both of these markets and comparing against demographics, such as total population, annual population growth, household income and average home valuation it was determined that that the Steiner store has a population that is growing and has a higher net worth and higher home values. Comparing the statistics of drive time to the stores, the population surrounding the Steiner store is over three times larger within 1 minute and over 2 times larger than the Bosworth store. The net worth, and home valuations are still higher in the Steiner neighborhoods. In both cases the Bosworth area has a higher average household income but it is also noted that the Book Lover Club annual sales are consistently higher for the Steiner store. It was determined that the Steiner Store is the model store.
Step 2-Review potential book store sites.
Three sites have been determined for new stores. The are the Northwest, Southwest and East Central locations. The following map shows a 1 mile buffer radius from the potential stores with the census blocks shown that have their centroid within the 1 mile buffer. The demographics for these stores have also been examined. At first glance the East Central appears to be the most desirable location for a new store as it has the highest overall population, the highest number of households and highest number of Book Lover Club members. However currently there are 12 competitor stores within a 1 mile radius of this location. It is also noted that although the Northwest store has the lowest overall population, it has the highest average household income, highest average net worth and highest home values. The Northwest location has only 4 competing stores within the 1 mile buffer and the 2nd highest number of Book Lover Club members. It appears at this point in the analysis, the Northwest location will have the best possibility of success based on these statistics and factors. No real estate costs were determined for any of these sites.
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