To calculate the IRS, a retailer needs to know the number of customers, the number of competitors, and the total square feet of space allocated to selling her/his kind of product in the trading area.

Question

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The IRS (Index of Retail Saturation) is calculated using the formula: IRS = (C * RE) / RF, where C is the number of customers, RE is the retail expenditure per customer, and RF is the retail facilities (total square feet of selling space). The number of competitors is not directly used in the formula.

To Calculate the IRS, a Retailer Needs to Know the Number