Retail Store Site Selection: Analyzing the Cost and Retail Gravitation Model - MAR3023 FAU CH11 Analytics

You also read a projection that Cedar Rapids is going to decline in size to 100,000 over the next decade. If that happens, and Iowa City grows to 97,000 in that same time period, what would be the new distance from the breaking point to your store in Cedar Rapids?

15 miles

You work with a consultant who tells you that Iowa City is projected to grow to 97,000 in the next decade. If that happens, what is the new distance from the breaking point to your intended store in Cedar Rapids?

16 miles

From Google data, you discover that the population of Cedar Rapids is 130,000 and that the population of Iowa City is 72,000. You plug these numbers into the above worksheet. What is the distance from the breaking point to your intended store in Cedar Rapids?

17 miles

You also consider another locality for your store, Cedar Falls, Iowa, which has a population of 40,000. Its twin city, Waterloo, has a population of 70,000. A major competitor has a toy store located at Crossroads Mall in the heart of Waterloo, 10 miles from the center of Cedar Falls, where you are planning to open your new store. You want to know the distance from the breaking point to your intended store in Cedar Falls. Using the same worksheet above, what did you find?

4 miles

You are also concerned about a former co-worker who opened a similar store in Dubuque, which has a population of 59,000 and is 72 miles away. You want to know the distance from the breaking point to your intended store in Cedar Rapids. Using the same worksheet above, what is the distance for the breaking point to her intended store in Cedar Rapids?

43 miles