Retail Location Theories • Index of retail saturation (IRS): Ratio of demand for a product divided by available supply IRS = (H x RE) /RF %3D IRS - Index of retail saturation for an area • H- Number...

Discuss the concepts of over- and understoring and describe their relationship to the Index of Retail Saturation (IRS).

Extracted text: Retail Location Theories • Index of retail saturation (IRS): Ratio of demand for a product divided by available supply IRS = (H x RE) /RF %3D IRS - Index of retail saturation for an area • H- Number of households in the area RE - Annual retail expenditures for a particular line of trade per household in the area RF - Square footage of retail facilities of a particular line of trade in the area LO 4