LOCATIONAL ANALYSIS OF CONVENIENCE STORES

Abstract

Over the past few years, convenience stores have become increasingly popular with consumers. This is a result of changing consumer needs and preferences, which are due to increasing affluence. Now consumers are being lured away by modern supermarkets and minimarts offering goods, services and a shopping environment which many dark and musty provision shops obviously lack. In their hey-days, provision shops supplied entire neighbourhoods with essential items and all sorts of knicks-knacks. These days, however, the needs and habits of consumers have changed somewhat and so have their demands. A convenient location is important for a convenience store as this is one of the main factors that affect consumer patronage. Frequency of patronage by consumers will in turn affect the level of profits for the store. To analyse profits, a simple mathematical model which incorporates all factors affecting the location of convenience stores was adopted. A simple sensitivity analysis and a risk analysis will also be carried out to find the best location for such an outlet.