Catchment Area

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Catchment can be defined as the area /zone of the city from which the customers come into for shopping from a particular store.

Catchment analysis pre launch would ideally decide the product mix and formats of the stores. Catchment analysis done after a time gap of launch would also give a correct picture of whats happening and where to concentrate market energies to get more walk ins.

The catchment area for a retail outlet is the geographic area from which a customer is prepared to travel to reach that outlet.

Because a retailer is fixed to a specific location they rely upon encouraging customers to travel a set distance to purchase their product. Depending upon the types of products being sold determines if the retailer is attracting only “passing trade” or becomes a “destination site”.

Delhi is slowly catching up with rest of the world in terms of market openness and globalization. It's been only a decade and half and the signs can be seen in cities. Arguably, Shopping Malls are the visible witness of that change. Wherever you go in Delhi, you will find some or other glittering mall.

Due to the emergence of the 'Great Indian Middle Class', the country is witnessing a kind of retail revolution and shopping malls are coming up like mushrooms, to cash in that revolution. Few years back west Delhi had not even a single shopping mall but today you will a mall here after every 5 Km ,same is the case with all other parts of the city.

The delineation of catchments is not intended to suggest exclusive trade or service areas, and in practice there is likely to be a significant movement of trade across catchment boundaries. This may be a consequence of different levels of service available within different catchments, patterns of travel associated with work or recreation, or merely a preference for one centre or operator over another. It should not be assumed that all of the catchment areas defined, will be able to be fully serviced by centres within the particular catchment.

Doing the study is a huge advantage because it is going to tell you whether it is feasible to open the retail business in that location. It will tell you all about your potential customers and if your business will thrive or fail. The disadvantage is that the study will cost money. You need to think of it as the cost of doing business. To open and then be forced to close the retail store will cost you much more.

Types of catchment area:
There are four types of catchment areas. They are discussed below: •Unitary Catchment
It is hub of the catchment area around the outlet, from where maximum number of people comes to the retail stores for shopping. •Secondary Catchment
This area is called secondary catchment area which is around 2 km far away retail stores from where some people come to the shop for shopping. •Tertiary Catchment
The area from where only some selected or loyal customers come to the retail stores that is more than 2 km far from outlet. •Outer Catchment
Outer catchment area is totally outer area from where only less no. of person sometimes comes to the outlet. Factors that affect retail store performance:
Sufficiently high population
Whether the population can gain easy access to the store •Whether strong competitors are present

Don't confuse a lot of traffic for a lot of customers. Retailers want to be located where there are many shoppers but only if that shopper meets the definition of their target market. Small retail stores may benefit from the traffic of nearby larger stores. •How many people walk or drive past the location.

Is the area served by public transportation?
Can customers and delivery trucks easily get in and out of the parking lot? •Is there adequate parking?

Objectives of Catchment Area Analysis

To determine the size and geographic shape of the overall catchment area of the centre and the geodemographic profile of all visitors. Coverage
The total catchment area...
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