Hyatt-Palma Analysis

Hyatt-Palma Method of Retail Market Analysis

This description of a technique for analyzing a retail market is used by Hyatt-Palma, a downtown revitalization consultant firm based in Washington, D.C.
  1. Define the trade area.
  2. Inventory the complete shopping facilities of the competing businesses in the trade area. Include square footage and SIC1 code.
  3. Survey consumers. Assess the conditions in the downtownÑa qualitative technique to be applied later.
  4. Calculate sales leakage. This is based on Sales per Household per Year statistics from the U.S. Department of Commerce.
  5. Calculate sales potential for the downtown. This is based on total square footage for various business types and median sales per square foot.
  6. Calculate the potential for new floor area expansion based on leakage and current sales.2
    1 Standardized Industrial Classification. This system is used by government for classifying businesses by type.
    2 For more detailed information, contact Hyatt-Palma, Inc., P.O. Box 65881, Washington, D.C. 20035.
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