1
Name: Yana Dynkina
Student Number: 63126
Course Number: MKT 555
Course Title: Retail Management
Unit Number: Unit Three
1. Explain how a supermarket retailer can estimate the degree of market saturation
for a given location.
When there are a lot of shops to the point where sellers are not making enough money, it is
called an overstored trading area. This is why measuring saturation is important. Trade-area
saturation can be measured for a supermarket in a number of ways.
That trade-area is only capable of having a certain amount of establishments or berth. So
there are measures that assist with determining this for a supermarket (Berman & Evans, 2013, p.
248). These include how many people are at each store, how much each store sells, and how
much each store section sells. One must also keep in mind selling for each home, selling for each
foot of space, and how much sells for each worker. There are certain things to keep in mind
about the imbue volume.
That imbue volume of a market area is determined either with an aim—and if not—then
in examination with different tracts. A supermarket retailer can discover its market saturation
through calculating the number of people living proportional to supermarkets (Berman & Evans,
2013). Once this is known, the proprietor can choose if they put a supermarket elsewhere where
there is a lower rate. If not, the owner puts another supermarket within the current space. There is
specific information about market saturation.
The information about market saturation can be seen in the supermarket retailer’s
2
Name: Yana Dynkina
Student Number: 63126
Course Number: MKT 555
Course Title: Retail Management
Unit Number: Unit Three
accomplishment documents. Other sources from which to get it include urban plus civil data
telephone number listings, and customer questionnaires. Listed as well are economics facts and
market periodicals. Specific sources by name, could be, for instance: the Editor & Publisher
Market Guide and the Country Business Patterns. Selling by section, number of residents besides
how many homes per expanse is also found when looking into country plus civil statistics.
These statistics should be analyzed thoroughly when measuring certain item/aid market
