A retail site is also an investment in the product and image of the retail chain. While the deal may on its own appear to be attractive, the site analyst must consider how the location fits into the expansion plans of the parent firm, and how the location conforms to other locations that are successful with the chain's product offerings. A seven-step procedure is introduced that integrates geographic technology with a site selection procedural policy. Business Location Strategy A good retail site adds to the value of the product of the retail chain. Location is one of the most important competitive advantages that a firm can possess.
Location affects the demand that people have for the product offered by the retail chain.
Location contributes to demand because of the surrounding spatial distribution of people and their income, race, ethnicity, age, and so on. Each retail chain designs their product toward certain types of households. GIS analysts for retail chains learn the type of households that are more likely to be attracted to the offerings of the retail chain. Because people with the target characteristics are not uniformly distributed, then the location of the retail chain will affect proximity between the target population and the outlet. Proximity has a very large effect upon demand for the goods and services offered by the retail chain.