Trading Area: A Study in Corporate Banking Retailing in Brazil

Abstract

Location is the most important factor in the success of a retailing store location. Now, modern technics using geographical data is being used to assess the potential of a site. One possibility is to study the trading area of a determined site to learn about the distance a store drawn the majority of its clients. The objective of this paper is to study the factors that affect the trading area of the branches of a corporate bank in the city of Curitiba, Brazil. The study used interviews and used a secondary data of the bank to compute de trade area of each branch. Using regression analysis, the study found that the number of the ATM and cashiers and the number os competitors branches in the 2 km radius of the branches were responsible to explain 30,8% of the trading area containing 60% of the clients of the branches.