What is defined as a geographical zone from which a retailer attracts customers?

The definition of a geographical zone from which a retailer attracts customers is often referred to as a "trade area." This concept is crucial for retailers as it helps them understand and define the market they serve. By identifying this area, retailers can analyze customer demographics, behaviors, and preferences, which in turn informs store location decisions, marketing strategies, and inventory management.

This focus on a specific geographical area allows retailers to tailor their offerings and marketing efforts to meet the needs of the local customer base. Understanding the trade area is essential for maximizing sales potential and ensuring that the retailer is effectively positioned to attract the right customers.