"Trade Area Analysis: Reilly & Converse Law Calculator"
User Guide

How to Use

This page explains how to use the web app "Trade Area Analysis: Reilly & Converse Law Calculator".

　This calculator estimates the trade area range of the city where you want to open a store. Compared with a rival city, the distance at which your city has an advantage is within the trade area breakpoint. Areas farther away are more likely to be attracted to the rival city.

Now, let’s go over how to use the app.

First, enter the following three parameters.

　In "Population of Your City," enter the population of the city where you want to open your store. Next, for "Population of Rival City," it is best to assume a nearby large city as the rival city. In "Distance Between Your City and Rival City," you can enter the actual distance, but it is also effective to enter travel time obtained from services such as Google Maps route search.
　Please enter numeric values for each parameter. Leaving fields blank or entering non-numeric characters will result in an error.

　After entering the numbers, click "Calculate" to see the results.

(Results Page)

　The numbers you entered are displayed at the top. In this example, the trade area breakpoint of your city is calculated as 5.3 km. The area within a 5.3 km radius around your city is more likely to attract customers than the rival city. This area is called the trade area.

Features of the Reilly & Converse Law

This method is useful for measuring the trade area range of the city where you want to open a store.

Generally, cities with larger populations can attract more customers from surrounding cities. Cities with larger populations are assumed to have more attractive stores. Therefore, residents of nearby cities are more likely to shop in highly populated cities.

The calculation formula based on the Reilly & Converse Law is shown below.

The explanation of each variable is illustrated in the following diagram.

Since distance has a squared effect in the formula, distance plays a very important role in attracting sales and customers.

You can access the web app "Trade Area Analysis: Reilly & Converse Law Calculator" here.
Go to the Trade Area Analysis: Reilly & Converse Law Calculator