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What is frontage used to calculate in retail business?

a) Estimated sales
b) Location factor
c) Passersby per hour
d) Store profitability

1 Answer

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Final answer:

Frontage in the retail business is used to calculate passersby per hour, which impacts store visibility and potential customer traffic. It's an essential aspect of retail location analysis and influences the effectiveness of marketing and sales strategies.

Step-by-step explanation:

Frontage is a term used in the retail business to refer to the measurement of the store's facing on the street or the accessible length outside a store. It is an important factor in retail location analysis because it influences the visibility and accessibility of a store to the customers passing by. Specifically, frontage is used to calculate c) Passersby per hour. This is crucial because it directly affects how many potential customers are exposed to the retail outlet, which can lead to higher foot traffic and potentially, increased sales. The Huff Model is an example of a tool used by retail site location analysts to predict customer behavior based on the location and its characteristics, such as frontage. It helps businesses decide not only where to open a new store but also where to concentrate their marketing efforts. Factors like the departure time of a commuter train and the distance from your house to school can be analogized to frontage, as they represent intervals and distances that are measured and affect decision making in various scenarios.

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