Trade Area

Also known as: Trading Area, Catchment Area, Market Area, Service Area

Geographic zone from which the majority of a store or point of sale's customers come.

The Trade Area (or Commercial Catchment Area) is the geographic zone from which the majority of a retail establishment's customers come (store, restaurant, bank, etc.). It is typically defined as the area from which 60-70% of customers originate.

Its analysis is fundamental for: selecting locations for new stores (evaluating the market potential of the area before opening), estimating cannibalization between own stores, analyzing competition by zone, and planning local marketing actions.

Methods for delimiting trade areas have evolved significantly: from simple distance rings or drive-time areas (isochrones), to retail gravity models, Huff models, and analysis based on real smartphone mobility data.

Atlantia integrates trade area analysis in its Geomarketing solutions to optimize expansion strategies and local marketing.