What does the regression approach involve?

The regression approach involves using mathematical formulas to analyze relationships between variables, which can be particularly useful in location analysis for retail businesses. This statistical method allows retailers to identify and quantify how various factors influence sales or customer behavior. For instance, it can help determine how changes in population density, income levels, or proximity to competitors affect a store's performance.

By employing regression analysis, retailers can make informed decisions about where to locate new stores or how to optimize current locations to maximize profitability. This approach relies on historical data to predict future outcomes, making it a powerful tool in strategic planning.

While visual representations of trade areas, qualitative assessments of customer needs, and competitor reviews provide valuable insights, they do not utilize the mathematical rigor and predictive capabilities inherent in regression analysis, which makes options related to those methods less relevant in this context.