The Effect of Consumers' Lifestyle on Trade Area Size -- A Study of TESCO in Ireland and the Czech Republic

Abstract

Trade area size is a fundamental element in retail location analysis. Current theories about trade size calculate the size mostly from total population, store size and industry competition. However consumer lifestyle may also affect the size of the trade area. In this research the effects of two independent aspects of consumers? lifestyle are discussed: shopping frequency and housing pattern. Retailing company Tesco has operated in Ireland and the Czech Republic, two countries diverge on the above two aspects, for 15 years. Using statistical test, the different locational patterns of Tesco stores in Ireland and the Czech Republic is illustrated with respect to divergent consumers? lifestyle. The divergence of consumers? lifestyle may be related to two countries? urban development history.