This analysis will consider Durham in Ontario, where Foot Locker is yet to open a store in the region. Durham is a small community in West Grey Municipality, Grey County, Ontario province. This region’s population is low, maintaining a steady number of about 600,000 people over the last decade. Records indicate that the Durham region’s population grew from 608,124 to 645,862 between 2011 and 2016, which represented a 6.2% increase. Compared to the other surrounding regions, for example, Hanover, Durham has a slightly low population. Thus, Durham has low annual population growth, 1.08% growth to be precise (Durham workforce Analysis, 2018; Deloitte, 2017). The low population not only hinder the flourishing of businesses but most the international company are also reluctant to start operations in the region. However, the fact that there are no shoe dealers in the area presents an excellent opportunity for Foot Locker to start operations in this region. Besides the low population, there is a high probability of expanding its market to the neighboring communities. Being a global brand, Foot Locker concentrates explicitly on areas with high populations, such as North York, Oakville, and Toronto.
Going by the available statistics, the retail trade industry is one of the largest sectors in Canada’s economy. As of 2017, the industry contributed 96,581 million dollars of Canada’s GDP and approximately 5.48% of all industries combined. Consequently, the retail trade industry is the second-largest source of employment to Canadians after the health and health care. The sector contributed 11% of all employment opportunities in 2017 (Durham workforce Analysis, 2018). The employment trend has been maintained for the last two decades. Retail sales in Canada have been increasing over the years, with the sales amounting to about CAD 550 billion in 2016. In Ontario alone, retail sales contributed 37% of the total sales in Canada. Ontario’s retail predictions indicated that the sales are likely to increase by 3.5 by 2021 (Colliers International Consulting, 2017). While the population grew by 1.08% in Durham, the number of retail stores grew by 11.5%, increasing from 47,191 in 2014 to 52,607 retail stores in 2017. This being the case, it implies that Foot Locker can start a small retail store for its products in Durham despite the low population. With the retail spirit in the country, the company can easily sustain its operations in the region.
This geographical analysis indicates that retail trade in the Durham region is on an upward trend and, as a result, is attracting high-end international retailers, with Foot Locker being no exception. Besides, the region has a large labor force that could help lower the cost of production. Moreover, Historic Downton Bowmanville has proven itself as a tourist, shopping, and dining destination. Consequently, the historic town has been attracting more people into the region, which is a big boost for retail business. From the research, it is clear that there is no tension in doing business with the area (Durham workforce Analysis, 2018).
Furthermore, the regional government has initiated the Durham Region economic development strategy that highlights the five key growth areas. According to the initiative, Energy, Environment and Engineering (EN3), Agri-business, Innovative Technology, Health Sciences, Manufacturing, and Tourism…….