Leakage/Surplus Question

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01-13-2015 01:44 PM
AndyHenry
New Contributor II

Hello,

 

The leakage/surplus is defined by ESRI as followed: The Leakage/Surplus Factor presents a snapshot of retail opportunity. This is a measure of the relationship between supply and demand that ranges from +100 (total leakage) to -100 (total surplus). A positive value represents 'leakage' of retail opportunity outside the trade area. A negative value represents a surplus of retail sales, a market where customers are drawn in from outside the trade area.

 

Now my questions are, do you want a negative number or surplus? So this shows that your trade area(s) is/are thriving or do you want positive number or demand (so this shows your trade area(s) is/are thriving?)

 

Thank you,

 

Andy Henry

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3 Replies
DanPatterson_Retired
MVP Emeritus

I would go with the last sentence.

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AndyHenry
New Contributor II

Hi Dan,

So you want your demand (potential) to be higher than your supply (sales) correct? This would mean the higher (positive not negative) ‘Retail Gap’ the better for your trade area?

Thanks,

Andy

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AndyHenry
New Contributor II

Hi Dan,

So you want your demand (potential) to be higher than your supply (sales) correct? This would mean the higher (positive not negative) ‘Retail Gap’ the better for your trade area?

Thanks,

Andy

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