An entrepreneur considering two sites

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Reference no: EM13928024

An entrepreneur considering two sites for a men and boys' shop determines that he needs sales of $158 per square foot to be profitable. Site #1 has 13,500 potential customers who spend an average of $160.20 per year on men and boys' wear. Two competitors occupy 14,200 square feet of space. Site #2 has 10,800 potential customers spending an average of $152.10 per year on men and boys' wear. One competitor has 10,000 square feet.

The index of retail saturation for site #1 is:

The index of retail saturation for site #2 is:

Based on the above calculations, what is the entrepreneur's best option? Why?

Reference no: EM13928024

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