Buying Power Index

The video tutorial explains the concept of Buying Power Index, a tool used by retailers to assess the purchasing power of a geographic area. It highlights the importance of location in retail and how the index is based on factors like population, effective buying income, and retail sales. The Buying Power Index helps retailers strategically decide where to open new stores by indicating areas with high purchasing potential.

In what way does the Buying Power Index affect the decision of where to open new stores?

How does the Buying Power Index relate to effective buying income?