A shoe store in north Toronto wanted to identify its primary and secondary trade areas so it could tailor its product offerings and marketing to its core customer base.
The objective of analytics was to:
Based on a list of postal codes with total sales, we used the Gravity Model in PolarisIntelligence.com and derived a circle around the store that accounts for 60% of total sales. This defines the Primary trade area of the store. Similarly, the circle with 80% of total sales defined the Secondary trade area of the store. Once these trade areas were defined, we were able to compare the store’s customer profile with the trade area profile to identify gaps and potential opportunities for growth.
The map illustrates the primary trade area (10KM) with core customers concentrated on the east side of the store.
The map illustrates the secondary trade area (15KM) of the store.