Back to glossary
Glossary
Local relevant market
A local relevant market is the geographic and competitive perimeter within which a transaction should be assessed to measure actual competitive pressure.
Why it matters
It is the foundation of retail merger analysis. If the market is too broad, market shares are diluted. If it is too narrow, competitive risk can be overstated.
In practice
In practice, teams should combine store formats, demand-side substitutability and local geographic logic before calculating market shares or HHI.
Common mistake
Reducing the relevant market to a map or a default radius without any economic explanation of the formats kept in scope.
Launch your first analysis now
Contact us for a personalized demo of the platform.