Decisive factors Purchasing power
Purchasing power index
Income plus transfer payments, less savings and household debt. This income is available for consumption purposes (retail spending, rent, travel, transportation, etc.), as well as for savings and insurance.
Retail purchasing power index
Purchasing power indices provide information on the regional distribution of income per capita. The national average purchasing power per capita is represented by 100. High purchasing power index thus reflects a high rate of disposable income.
Retail purchasing power indices provide information on the regional distribution of income per capita, whereby they refer exclusively to the demand-driven share of disposable income (see above). The national average retail purchasing power per capita is represented by 100. A higher retail purchasing power index therefore reflects a high demand potential that becomes available to retail.
Retail sales volume index
The sales figures are based on retail sales, and unlike retail purchasing power, represent achievable sales yields that are available based on the number and performance of existing commercial enterprises in the location.
Retail sales volume indices provide information about the addressable market potential in a specific retail area. On the basis of the population in the market area and other market-related parameters, the indices enable an estimate of the available market volumes. The retail sales volume index is an indicator of the level of retail expenditure in the respective municipality per capita. The retail sales volume index per capita indicates whether a particular area lies above or below the national sales average – represented by 100.
Chain store concentration
In practice, the regional significance of retail and retail-related purchasing power differ from one another. The retail centrality index is derived from the ratio of purchasing power in the city and the influx of purchasing power from outside the city. This centrality index is calculated by dividing the retail sales index by the corresponding value of retail purchasing power, although here too the national average is set to 100. If the index lies above 100 (this is the case when the sales volume index is greater than the purchasing power index), then sales levels are strong influenced by customers from the surrounding area. The centrality index thus enables conclusions for evaluating the city as a central location and its supra-regional importance.
New tenancy rate
The chain store concentration is the percentage of chain stores, franchises and buying syndicates (that trade under the same name) among all leased retail stores in the area under investigation.
The new tenancy rate is the proportion, in comparison to the last survey, of newly leased or newly used retail stores (excluding vacancies) among all retail stores in the area under investigation. Excluded are floor space expansions of an existing company through the lease of an adjacent retail store.