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Retail Trade, Geography of

Retail trade is one of the world's largest economic sectors and is the final step in the distribution of merchandise from producers to consumers. The geography of retail trade is concerned with the spatial patterns of stores, the behaviors of consumers, and the spatial interactions between them. Research on retail trade contributes to a better understanding of economic processes. For example, retail trade can be analyzed in terms of consumer demand and its behaviors, and store supply and its strategies can be examined in the context of various geographic scales. Retail studies show that there are significant demographic differences in the retail attraction of stores, each of which has a different distance decay effect. Different socioeconomic profiles of customers have also influenced retail trade. For example, income is a good indicator of store choice. The spatial dimension of retail trade is important since every store's trade area is influenced by its location, its proximity to different types of customers, and the layout of other competitive stores.

Retail stores vary greatly in size—from small local shops to large supercenters that form part of national chains. The best way to understand retail trade is to know the customers and where they are located. Both demographic and behavioral analyses are approached in retail trade research to understand consumer behaviors. Demographic studies use basic population characteristics such as age, income, marital status, and so on. These

demographic factors often account for buying patterns. Behavioral analyses emphasize consumer attitudes, values, and perceptions; social factors that shape consumer behavior; perceptions of different stores; and attitudes toward shopping as an activity, which vary by age, income, gender, ethnicity, and location.

Retail trade establishments and Spatial changes

Retailing represents sales of new and used goods in small quantities to the general public for personal or household consumption, as it is located in retail outlets without including the informal retail sector. There are three main components in store-based retailing: sales, outlets, and selling space. Retail sales represent the value added in the distribution of goods and services to consumers, excluding value-added or sales tax. Retail outlets are business units that are used principally for retail trade; therefore, each store within a shopping mall is counted separately. Retail selling space refers to floor space within a retail store used for trading; it is also known as sales floor area, trade area, trading area, sales area, and retail square footage.

Among retailers, grocers are the geographically dominant retailers, selling foods, beverages, tobacco, and other everyday household items at supercenters, supermarkets, discounters, and small grocery retailers. Supercenters are retail outlets selling groceries and nonfood merchandise with a minimum retail sales area of 26,910 ft.2 (square feet). They are usually located in suburban malls or shopping centers as the anchor store that is easily accessible by automobile. Exemplary brands include Walmart, Target, Kmart, and so on. Supermarkets sell groceries with a selling space of between 4,306 and 26,910 ft.2, selling at least 70% groceries. Supermarkets grew quickly across the United States with the growth of suburban development after World War II. Most North American supermarkets are located in suburban strip malls as a “draw tenant” along with other small retailers. They are generally regional rather than national in their company branding. Representative names include Kroger, Safeway, and so on. Kroger is one of the most nationally oriented supermarket chains in the United States.

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