GfK has released a new study on the drawing power of stationary retail in Germany. The study "GfK Retail Centrality 2013" shows that eight of the ten districts with the highest retail centrality are located in Bavaria. These retail locations generate turnover in excess of the funds available to the local population, which means they attract customers from other areas.
GfK Retail Centrality is a measure of the attractiveness of a city in terms of its ability to draw and sustain retail trade. An attractive city from a retail point of view is one with a turnover level that exceeds the purchasing power available to its immediate inhabitants. .
According to the study "GfK Retail Centrality 2013", the locations best able to do this are small Bavarian cities with between 40,000-60,000 inhabitants. These cities have centrality ratings between 180 and 220. A centrality rating of 100 means that purchasing power inflow and outflow are equal. Values under 100 indicate an outflow of purchasing power, while values in excess of 100 indicate an inflow of purchasing power from beyond the location in question.
"One of the factors that determines retail drawing power is the role a given location plays in the encompassing region," says Simone Baecker-Neuchl, GfK market data expert. "Cities such as Straubing, Passau and Weiden function as supply centers for the surrounding rural areas. The quality of the retail offering in a given area is also decisive in terms of whether nearby consumers travel there for their shopping needs or choose to go to a larger city or shopping center further afield. Stationary retailers can therefore improve their chances of success by luring consumers with an attractive offering."
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