Buying Power Index (BPI)


Buying Power Index (BPI) is a weighted index that converts three basic elements—population, effective buying income, and retail sales—into a measurement of a market’s ability to buy.

It indicates the percentage of total US retail sales occurring in a specific geographic area and is used to forecast demand for new stores and to evaluate the performance of existing stores.[1]



  1. ^ American Marketing Association, AMA Dictionary.

Comments are closed.