Site Selection Theories

Central Place Systems

It is based on a single center and a flat land. Consumers choose the shortest distance and shop with a single purpose.

Bid Rent Theory

Companies can pay higher rents and increase the value of the land to attract more customers and increase competition.

Retail Gravitation

Two big cities attract the trade from a small town to themselves.

Multipurpose Shopping and Retail Agglomeration

A theory showing that customers can prefer longer distances in order to find the product or service they are looking for. Consumers also go out for multipurpose shopping.

Spatial Interaction and Competing Destinations

It states that retail locations and their environments attract customers and affect their choices.