The index of retail saturation is:
A)retail expenditures times retail facilities divided by the number of customers.
B)the ratio of a trading area's sales potential to its sales capacity.
C)a buying power index.
D)retail facilities times the number of customers divided by the retail expenditures.

Question

Quizplus · Accepted Answer

The index of retail saturation measures the ratio of a trading area's sales potential to its sales capacity, indicating the level of competition and customer demand in the area. Option A and D are incorrect as they involve dividing by the number of customers, which does not measure the capacity of the trading area. Option C is incorrect as it refers to a separate measure that assesses the ability of consumers to make purchases in the area, not the capacity of the retail market.

The Index of Retail Saturation Is