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Spatial Analysis

        Based on the Walter Christaller’s central place theory, suggested locations for the new MEC retail store must be located within its sphere of influence so that it can provide services to the inhabitants.

        Two basic principles of central place theory must be noticed: the range and the threshold of goods and services.

        The range of a good or service is the maximum distance that people are prepared to ravel to obtain it. According to his assumptions, some central places offer only convenience or low-order goods, which are brought frequently and daily, are not sufficiently high in value to attract customers from further than the immediate catchment area and so have a small sphere of influence. For example people are not prepared to travel far to buy a newspaper. Other central places offer comparison or higher-order goods, which are purchased less frequently but which need a much higher threshold population. People are willing to travel further to get what they want and so these central places have much larger spheres of influence. For example people are more prepared to travel considerable distances to high-order outdoor equipment at MEC.
        The threshold of a good or service is the minimum number of people required to support it. Services locate where they can maximize the number of people in their catchment area and maximize the distance form the nearest rival. It is assumed that people will always use the service located nearest to them. As a rule, the more specialised the service, the greatest the number of people needed to make it profitable or viable. According to this rule, the new MEC store must be located in a region that contain enough people to make it profitable.

        Therefore, Six regional municipality boundaries (RMB) are selected as their populations are over 118801 which are potential for suggested locations for a new MEC shown in Map 1:


Top 12 Tographic Coverage Areas (TCA)  are also chosen that are intersected by RMB:

PID
Full-Name
Map 1:
Major Topographic Coverage Areas within Regional Municipality Boundaries 
0
ABBOTSFORD   map1
19
CHILLIWACK 
33
DUNCAN 
56
KAMLOOPS
58
KELOWNA 
74
MERRITT  
81
NANAIMO
90
PARKSVILLE  
130
SUMMERLAND 
142
VANCOUVER 
143
VERNON 
144
VICTORIA 

        The preferred locations for the new MEC retail store must be located outside the Greater Vancouver Region District as the existing MEC retail store has successfully covered the range and the threshold of central place functions in the this region. Thus, people who live in the lower mainland will probably visit the existing MEC store located at the 130 West Broadway (49°11' N, 123°10' W).

        The suggested locations for the new MEC store, which is a high-order good, needs a large threshold population and therefore have to attract people from the whole region or beyond. Therefore, the suggested locations are determined by the frequency of visit, their accessibility, the cost of land and population.

        On map 2, 120 kilometers buffer distance for the exisitng MEC is assigned to show its serving boundary. According to this buffer zone, any potential tographic coverage areas within the zone will be ignored and the rest of those potential tographic coverage areas are suitable for the new MEC retail store. Kamloop, Kelowna, Merritt, Summerland and Vernon are counted as potential regions for a new MEC store.

Map 2:
The Existing MEC Store and its Serving Boundarymap2


         MEC products are higher quality, which are higher-order goods, than other outdoor brands so that MEC has larger spheres of influence in order to cover the Okanagan Valley population. Therefore Okanagan Valley is the potential region for a new MEC store because it covers a vast area of BC’s interior including cities.
         Kelowna
region will be chosen for the new MEC store not because it has the highest population in the Okanagan valley, but it is situated on the eastern shore of Okanagan Lake mid-way between Penticton in the south and Vernon in the north that is the main transportation point for surrounding areas such as Merritt, Kamloops, Vernon, and Summerland.
In addition, the city of Kelowna is selected because it is located in the center of the Central Okanagan Region District that contains a large threshold population and it has developed a better housing estates, neighbourhood units and central business district (CBD) that other region districts in the Okanagan Valley so as to be within easy reach of their customers.


Map 3: Location of Kelowna

map3


            Map 4 shows the existing outdoor retail stores in kelowna and different land use categories. In my analysis, the suggested locations for the new MEC store must not be located in the commercial park and recreational, resource and industrial, and government and institutional land use. Thus the new MEC store will be located in these land use areas: Residential and Open Area.


Map 4: Land Use Category and the Locations of Existing Outdoor Retails
map4


Potential land use areas are the areas contain residential and open area. Commercial areas are not selected for potential locations as the land prices will be realtively higher than those in the open areas and residential areas. Map 5 provides a clear spatial pattern of potential land use areas for the new MEC store.

Map 5: Potential Land Use Area for the New MEC Retail Store
map5



           
                In order to refine the potential area from map 5, a query is performed to narrow down the the potential area.

First, the suggested locations must not be located near the Railway as it will destroy the amenity. Therefore, polygons within 100 meters distance of Railway will be counted as non-potential areas on Map 6. On the other hand, the new MEC store must be within 100 metres of major roads and highways, which are Cadder Drive, Cardon Ave, Havery Ave, Highways 33, Highway 97, Pandosy Street, Rutland Road, Spall Road and Springfield Road based on the map 6. It is crucial to select a location that is visible from major roads and highways because many MEC members are from outlying areas that they will take this major roads and highways. Map 7 shows those potential areas which are within 100 meters distance of major roads and highways.

Map 6: Non-Potential Site
within 100 Meters Distance of Major BC railway

Map 7: Potential Areas
within 100 Meters Distance of Major Roads and Highways
map6 map9


                After multi-queries are performed to find out the potential site from the landuse and major roads and highways, the next step is to intersect potential site and high average household income. However, before I intersect these two layers, a query for high average houldhold income is needed. Map 8 indicates the average household pattern in Kelowna. The result of this layer is generated from the DA layer associated with the census table.

Map 8: High Average Household Income
map8


           Another query is performed in map 9. Specifics with regards to actual income levels of individuals have served as a better tool. In focusing on this aspect, the degree of employment can be easily inferred simply by observing income figures.  This will also provide better estimates into levels expendable income that will be used towards products at MEC. However, in this layer, only the top two average household income groups with high population density areas are selected. It is because I want to avoid any modifiable areal unit problems and ecological fallacy in my analysis that I will discuss in Operational Problems.  On Map 10, a query is performed to intersect average household income and potential areas. The result of this layer indicates the spatial distribution of the most potential customers that can support the operation of the new MEC retail store.

Map 9: Top Two Average Household Income
with High Population Density
Map 10: Potential Areas with High average income and Population Density
map9
map10


        This query will be the 1000 meters buffer zone of competition. Ideal Locations for New MEC retail Store will be formed by  removing any areas within the 1000 meters buffer zone of competition. Moreover, based on the idea of catchment concept, the new MEC retail store's buffer zone (catchment area) cannot not be overlapped with those competitors' buffer zones.  Therefore, I will remove any ideal locations fall in another 1000 meters buffer distance of the current competitor's buffer zone.


Map 11: Ideal Locations outside
Competition's buffer zones
map 11

RESULTS AND DISSCUSSIONS

            The creation of a new Mountain Equipment Co-op store in Kelowna, BC proves to be a plausible project that will likely be very successful.  Once analysis and all of the various processes are completed and involved, as previously discussed, I end up with the resulting map 12.  This shows Three Suggested Locations for the NEW Mountain Equipment Co-op that can be viewed from the main highway in Kelowna.

Map 12: Suggested Locations for
the New
Mountain Equipment Co-op Retail Store

ideallocation

            There are many steps involved in achieving the final product, but the transition between maps 11 to 12 have three main steps. I need to decide on a location for the new MEC store from the 8 remaining “ideal” locations.  These ideal locations that are within 100 meters of major roads and highways, are outside of the 1000 meters buffer distance of competitors, and are in areas with high average household income and high population density in the labour force. I think that the first set of criteria, that is, being within 100 meters of major highways, is probably the most important.  This is for reasons such as many people simply passing through Kelowna This location will be especially crucial in the summer as Kelowna’s population virtually doubles in size with the masses of tourists, either making the city their destination for holiday, or others who are just passing through. Also, locating within 100 meters of major roads caters to the local population, who do their day-to-day shopping for items such as groceries in the same area. In addition, many Okanagan residents make the commute to Kelowna, either on a daily basis for work, or occasionally for shopping.

           Secondly, locating the MEC store at least 1000 meters away from competitors and commercial areas will ensure the interests of both new and current customers of outdoor gear will be met.  For instance, many customers who normally shop at a nearby competitor, may choose the new MEC because of its location being closer to their places of dwelling.  The location will also spark the interests of new customers who live in close proximity simply out of curiosity of the new store in their neighborhood and special promotions for those within a certain postal code range. 

            Finally, a location for the MEC in an area with a high level of individuals in the labour force will aid in its success.  For example, a high population density for a set area, in which people are working, indicates that there are a greater number of people with expendable income.  Subsequently, these people may be drawn to the new store and its goods and be able to afford products on a regular basis.  Because MEC products are higher quality than many other outdoors brands, prices may be slightly higher than many people are accustomed to, although due to its large scale they remain relatively competitive. This fact results in fewer unemployed people who are unable to afford gear on a consistent basis, which supports the above criteria for locating within a high populated area who are in the labour force. 

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