| Abstract: | Fifty retail chains with more than 70,000 U.S. store locations were placed into a cluster analysis to group together similar chains based on lifestyle segmentation composition of store trade areas. Five distinct cluster groups emerged. The objective was to analyze whether the geographic exposure to various lifestyles is aligned with the value platform of each retailer. Competitors were also analyzed along the lines of group membership. Although not all competitors were in the same groups, category killers generally located near higher income segments, whereas value retailers and chains that feature off-price merchandise generally located near customers with more modest incomes. |
