In order to conduct the study about the importance of the selection of location for a retail shop and its effect on the overall GDP, the main research sources were through print media, data obtained through ESRI, electronic media like statistics and surveys, books and so on. The hard data are collected from the necessary sources and from surveys and experiments. For the purpose of knowing the theoretical impact of the study in a real time scenario, the required data are collected from the respective sources so as to include statistical analysis in the study. The data is quantitative and there is no requirement for interpretation on the data. The research is conducted on inductive method, wherein data is collected and theory is developed based on the data. Before selecting the primary research, the approval from the tutor has been obtained.
Considering the location of a shop is a vital aspect for the business to get noticed. The location of a business entity is one of the main elements of a company’s marketing strategy. While starting a retail shop, it is essential to consider where the locality of the shop has to be. This is due to reason that, the shop location decides the number of customers flow in to the shop. If the shop is located in a remote place where there are a less number of residents, then it will affect the business in an adverse manner. People do not prefer to travel a long distance in order to buy their daily needed products. This may lead to more inconvenience to the customers.
On the other hand, when the shop is located in a retail place which is at the heart of a city or at a centre place, then more customers can visit the shop without any difficulties. This will not only increase the profitability of the retail shop, but also the ease of the customers to buy goods they wish to have.
In this report, one of the analysis conducted is to know the purchasing power of the households. By knowing this, the exact percentage of people spending their money for the purchase of retail goods and services are known. This will be helpful also to know the business performance level of each retail shop and also the impact that the location of a retail shop affects the consumption pattern of people.