Accurate definition of the catchment area involves knowledge of the topography, the drive-time zones and competition.
In the retail industry, the term “catchment area” refers to the analysis of the trade area population and studies the accessibility to the shopping mall. This means that inhabitants within the referred area tend to travel to a given shopping center rather than to a competitor.
Defining the location and the catchment area is a very important element in developing the business of a shopping centre, as it defines one of the primary characteristics of a given shopping mall and its potential customers. The catchment area defines the market capacity of a retail project and provides crucial information on demographics and purchasing power.
Traditionally, there were three ways used to help managers of shopping centres define catchment area:
Circular buffer – the trade area is defined by the geographic distance from the store
Driving-time zone – the trade area is defined by travel time by car to the store
Proximity zones – the catchment profile gives importance to zones nearest to the store.
Even though those methods were good enough to make estimations, more efficient and sophisticated mechanisms can be put in place to enhance the accuracy of this important element.
Predixit offers a solution that is based on the data available through the use of the virtual fidelity card. The customer app includes a module that extracts information made available by the user and sends it over to the central database. At this point, the data gets aggregated and presented in a graphical and analytical fashion.
Important decisions, such as marketing investment and competitor analysis, can be made based on the accuracy of the catchment area.