Trade Area Analysis Calculator
Where should you open your store?
In retail, restaurants, and service industries, location conditions are one of the most important factors that greatly affect sales.
The "Trade Area Analysis Calculator" is a free web app that allows you to easily calculate famous trade area analysis theories such as:
Reilly’s Law, Reilly & Converse’s Law, and Converse’s Law.
Analyze whether your target city has an advantage over surrounding cities and how customer flow changes, then use the results to improve store strategy, expansion strategy, and marketing strategy.
What Is Trade Area Analysis?
Trade area analysis is a method used to analyze customer areas that are likely to visit a store.
Based on factors such as population size, distance between cities, and purchasing power, it predicts which regions can attract customers.
It is especially important in the following industries:
- Retail Business
- Restaurants
- Drugstores
- Shopping Malls
- Convenience Stores
- Service Industries
- Franchise Stores
Trade Area Analysis Calculator
| Category | Link | Description |
|---|---|---|
| Reilly’s Law | 〇 |
Calculates how strongly two cities attract customers from surrounding areas. Also known as the "Law of Retail Gravitation," it is used in commercial facility and large store location analysis. |
| Reilly & Converse’s Law | 〇 |
Calculates the distance between your city and the trade area breakpoint. Areas closer than the breakpoint are expected to favor your store, while areas farther away tend to favor the rival city. |
| Converse’s Law | 〇 |
Calculates how strongly a large city attracts the purchasing power of a smaller city. Also known as the "New Law of Retail Gravitation," it can analyze consumer concentration toward major cities. |
What You Can Do with This Web App
- Analyze customer attraction between cities
- Calculate trade area breakpoints
- Compare competing cities
- Evaluate the advantages of store locations
- Create reference materials for store and location strategies
- Learn marketing analysis
Recommended for These People
- People considering opening a new store
- Store development managers
- Business owners and entrepreneurs
- Students who want to learn trade area analysis
- People studying marketing
- People planning franchise strategies
- People who want to compare cities using data
Benefits of Using Trade Area Analysis
Trade area analysis allows you to make store location decisions based on data rather than intuition.
- Improved sales forecasting accuracy
- Understanding competitive risks
- Visualization of customer inflow areas
- More reliable location selection
- Optimization of business strategy
Start Trade Area Analysis for Free!
By not only understanding the theory of trade area analysis but also entering actual numerical values and performing calculations, you can conduct more practical location analysis.
Please use this tool for store expansion strategy, store management strategy, and marketing strategy.