GIS-based method of delimitating trade area for retail chains

Delimitating trade area with accuracy is a major concern for retail and service companies who want to adapt their marketing strategy to be competitive in today's highly competitive chain industry. A collection of methods have been proposed to delimitating trade area, but either some are too simple or the necessary data are not available. In this article, a geographic information system-based method for precisely delimitating trade area is proposed. It is based on the fact that the social and economic activities are actualized along the street networks. The trade area can be delineated in terms of time distance with high precision taking the practical traffic situations into account. In addition, centered on this method of delimitating trade area, a wide array of functions can be extended to support both operational day-to-day and long-term strategic decision making for retailers.