In recent years, the retail environment has become deeply
fragmented. A Consumers options for buying food have greatly
expanded as a result of continual evolvement from the retail
industry. The shift from conventional purchase formats to non-
traditional developments, impose heightened competitive pressure on
supermarkets. The accelerated growth of different retail formats and
transformations in product delivery channels has changed the
competitive structure of the industry and the landscape of the
retail trade. Warehouse stores and super-centers are quickly moving
into market segments once dominated by department stores and
supermarkets. Product offerings of recent retail formats such as
warehouse clubs coincide to an extent with those of established
formats like grocery. This overlap distorts intertype distinction,
imposing the need for comprehensive understanding of retail
Location, location, location is a mantra for retail success. Store location
remains a crucial driver of store performance in the modern retail
environments (Tammo, 20120). Retailers preferred store location depends on
various aspect such as, type of industry, product category, and the degree
of competition (Tammo, 20120). With a consumer lens, distance of travel
strongly influences attractiveness of store, and from a retailer's lens,
choice of positioning holds great capital investments that ultimately
determines the trade area of the store.
To investigate the strategic importance of location decision, we examine
the retailer "Costco" and evaluate the location site against creating
strategic advantage. In our evaluations we examine Costco's trade area,
in first defining, than analyzing by looking at geographical information
to address factors concerning store type, competitor placement, and the time
taken to travel to the store. Characteristics of the population, economic base,
competition and level of ret...