Why do stores cluster together?
A)to decrease competition
B)to increase their customer pulling power
C)to take advantage of tax breaks
D)to create franchise organizations
E)to standardize product assortment

Question

Quizplus · Accepted Answer

Stores tend to cluster together to increase their customer pulling power. This is because when similar or complementary stores are located close to each other, it creates a shopping destination that will draw in a larger number of customers. Customers are more likely to visit a location with a variety of options than to travel to multiple locations, increasing foot traffic and potential revenue for all the businesses in the cluster. Additionally, the presence of multiple stores in a small area can create a sense of competition and urgency for customers to make purchases, further increasing sales.

Why Do Stores Cluster Together