RM2215 Chapter 8 Activity – Retail Site Locations1. Which factors do retailers consider when evaluating an area of the country to locate stores? How do retailers determine the trade area for a store? Explain you answer. (5 points)2. True Value Hardware plans to open a new store. Two sites are available, both in middle-income neighborhood centers. One neighborhood is 20 years old and has been well maintained. The other was recently built in a newly planned community. Which site is preferable for True Value? Why? (5 points)RM2215 Chapter 8 Activity – Retail Site LocationsRead Chapter #8 on Retail Site Locations and review the PowerPoint on Canvas. Answer the following questions, using detail from the chapter and your opinion.Explain your answer. Upload your answers on Canvas using a Word document. (10 points).1. Which factors do retailers consider when evaluating an area of the country to locate stores? How do retailers determine the trade area for a store? Explain you answer. (5 points)Economic conditions, competition, the strategic fit of the population of the area with the retailer'starget market, and the expense of running stores are all factors to consider. Customers will have to travel a certain distance to get to the store, which is how retailers calculate a trade area. Natural and physical impediments, rivalry, the form of product sold, the selection supplied, and the locations of alternative merchandise all influence the size of the trading area. When developing a trading area, all of these variables are taken into account.2. True Value Hardware plans to open a new store. Two sites are available, both in middle-income neighborhood centers. One neighborhood is 20 years old and has been well maintained. The other was recently built in a newly planned community. Which site is preferable for True Value? Why? (5 points)Value Hardware would do well to locate a new store in the newly developed area. This is due to the fact that the other site already has a hardware shop and is well-maintained. The community that is now being developed will require hardware in the future as it is maintained and changed. They will avoid unwanted rivalry and cultivate a loyal client base, which will generate future sales in years to come, by picking the newly created