The trading area overlap between two shoe stores of the same chain is significant.What conclusion can we make about the level of saturation in this geographic area?
A) It is overstored.
B) It is understored.
C) It is saturated.
D) Both stores are parasite stores.

Question

Quizplus · Accepted Answer

When two stores of the same chain have a significant trading area overlap, it indicates that the geographic area is overstored, meaning there are more stores than necessary to serve the market effectively, leading to potential cannibalization of sales between the stores.

The Trading Area Overlap Between Two Shoe Stores of the Same