| This research examines the target customer and locational strategies of specialty grocer Trader Joe's. Suggesting that the franchise's rapid growth may have led to errors in their site location decisions, this paper statistically tests the locational viability of the Trader Joe's store in Amherst, NY. Using the Western New York region, the metropolitan statistical areas of the Buffalo Niagara and Rochester areas are assessed. Applying a three step site selection process, the research utilizes William Applebaum's Analog Model and Multiple Regression to leverage the sales performance of three suggested locations against the Amherst, NY location. To accomplish this, the research uses various population, housing, and sales characteristics in order to measure store performance. In addition, traffic counts, cost of base rent, and competitors are examined. Ultimately, the research suggests that the Amherst, NY store is not located at the optimal location in the Buffalo Niagara market. |
