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GCSE Business · key term
Customers attracted to a business because they happen to pass its premises.
Used by AQA, Edexcel and OCR
Paper 1, Paper 2
Customers attracted to a business because they pass its premises, rather than making a planned journey specifically to visit it.
Revise: Factors Influencing LocationA shop can also gain passing trade: people who notice it while walking past and decide to enter. However, a busy location is useful only if it attracts people likely to buy the business's products.
Specification 1.4.2 · Paper 1
Develop the consequence of a location choice: for example, higher passing trade could increase sales, but higher rent could reduce profit.
E-commerce reduces reliance on passing trade, but businesses selling physical goods still need storage and delivery arrangements.
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Custom gained from people who pass a business and decide to buy from it.
High footfall—the number of people visiting or walking through an area—creates opportunities for passing trade. This is when people passing the business decide to buy from it.
Paper 2
Revise: Factors Influencing LocationFor a business relying on passing trade, people walking past may notice the premises and decide to buy. Greater footfall therefore creates opportunities for sales, although not everyone passing will be interested in the product.