June 8, 2011

Trading Area (TA)

Trading Area (TA) - Both Nielsen and IRI construct retail geographies in consultation with individual retailers. Nielsen calls these geographic areas Trading Areas (TAs). IRI calls them Retailer Marketing Areas (RMAs).

A TA/RMA is constructed by county. A TA/RMA can cross state borders.

In many cases, Nielsen and IRI will offer multiple TA/RMA options for a particular chain. For example, you can look at Stop & Shop New England, Stop & Shop New York, or Total Stop & Shop.

Each TA/RMA also has a “remaining market” which represents their competition in that geographic region. This remaining market is important for benchmarking.

To create the remaining market for a retailer, IRI and Nielsen include all competitive stores physically located within the boundaries of that retailer’s RMA/TA. Nielsen calls the retailer’s competitive market the ROM (short for “Rest of Market”). IRI calls it the CRMA (short for “Competitive Retailer Market Area”).

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