Several vendors provide “market reports” that offer estimates of the retail potential in areas defined by the user. How good is that data? Not long ago, we published a white paper addressing that question. In a nutshell, the answer is that they are often wildly inaccurate.
We are not alone in stating this. An analysis by the Institute for a Competitive Inner City found the same. In their efforts to verify the source data they found egregious errors that call into question the validity of the results.
Our white paper, Algorithms, Assumptions and Ignorance: Just How Reliable are the Numbers in Your Market Analysis?, describes the problems in these reports in detail.by