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STORE LOCATION AND SITE EVALUATION

STORE LOCATION AND SITE EVALUATION. LOCATION VS SITE. LOCATION IS A BRODER CONCEPT WHICH DENOTES THE STORE AND ITS AREA FROM WHERE A MAJORITY OF CUSTOMERS ORIGNATE . A SITE REFERS TO THE SPECIFIC BUILDING OR PART OF THE BUILDING IS LOCATED. YOU CAN HAVE A GOOD LOCATION BUT A BAD SITE.

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STORE LOCATION AND SITE EVALUATION

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  1. STORE LOCATION AND SITE EVALUATION

  2. LOCATION VS SITE • LOCATION IS A BRODER CONCEPT WHICH DENOTES THE STORE AND ITS AREA FROM WHERE A MAJORITY OF CUSTOMERS ORIGNATE . • A SITE REFERS TO THE SPECIFIC BUILDING OR PART OF THE BUILDING IS LOCATED. • YOU CAN HAVE A GOOD LOCATION BUT A BAD SITE.

  3. LOCATION • LOCATE IN HASTE REPENT AT LEISURE • COMPETITIVE ADVANTAGE • LOCATION IS THE PRIME CONSIDERATION IN A CUSTOMERS STORE CHOICE • LOCATION IS A MAJOR COST FACTOR- • INVOLVES LARGE CAPITAL INVESTMENT • AFFECTS TRANSPORTATION COST • AFFECTS HR COSTS • LOCATION IS A MAJOR REVENUE FACTOR • IT EFFECTS THE CUSTOMER TRAFFIC • VOLUME OF BUSINESS

  4. L EVELS OF LOCATION DECISION • SELECTION OF CITY • SELECTION OF AREA, OR LOCATION WITHIN A CITY • IDENTIFICATION OF A Specific SITE

  5. SELECTION OF CITY • Size of the city trading area • Population growth in the trading area • Total purchasing power and its distribution. • Total retail trade potential for different lines of trade- a city might become a specialist in certain line of trade and attract customers from other cities.

  6. Number and quality of competition • Development cost

  7. Hub and spoke concept

  8. Selection of an area or type of location within a city • Customer attraction power of shopping district. • Competitive store • Availability of access routes • Nature of zoning regulations • Direction of the spread of the city

  9. Types of retail locations • Freestanding sites/ isolated stores • There are no other retail outlet in the vicinity of the store therefore the store depends on its own pulling power and promotion to attract customers.

  10. Advantages & disadvantages • No competition in close proximity. • Rental cost low • No group rules to be followed • Large space • Easy parking • Difficulty in attracting customers. • If far people will not travel • Cost such as lighting security trash all has to be borne alone • Store may have to be built not rented

  11. Business associated location • Where a group of retail outlets offering a variety of merchandize work together to attract customers to their retail area, but also compete with each other for the same customer. They are further classified as- • (A) unplanned business district • (B) planned shopping center

  12. Unplanned business districts • An unplanned business district is a retail location where two or more stores locate together or in close proximity in such a way that the total arrangement is a mix of stores is not due to proper long run planning, • Stores based on what is best for them and not for the district.

  13. Central business district • Is the hub of retailing. • Is synonymous with down town. • They draw people from far flung places • Depending on the city area can be more than one CBD

  14. Advantages and disadvantages • Public transport • Variety of stores, services, products • Customers • Traffic • Parking • Frail conditions of stores • High rent

  15. Secondary business district • Unplanned shopping area in a city or town that is usually located on a major intersection of a city. • SBD is smaller than that of CBD

  16. Neighborhood Business District • Appeals to single residential area .

  17. STRINGS • An group of retailers located near a highway or isolated place. • Starts as an isolated venture and grows as more stores come in to form a string.

  18. The planned shopping center • Consists of a group of architecturally owned or managed stores designed & operated as a unit based on balanced tenancy & surrounded by parking facility. • Size & mix depends on the type of trading area.

  19. ADVANTAGES • Well rounded assortments of goods and services based on long range of planning • One stop family shopping • Cooperative planning and cost sharing • parking

  20. REGIONAL SHOPPING CENTER • Large planned shopping centers, serves large trading area, high rent, food court and entertainment facility.

  21. NEIGHBORHOOD SHOPPING CENTER • Moderate size, attract the neighborhood, start planned and then become unplanned .

  22. SPECIALIZED MARKET • Market famous for a particular product categories.

  23. Site selection • Adequacy and potential traffic passing the store. • Complimentary nature of adjacent store. • Parking • Accessibility • Visibility • cost

  24. TRADE AREA • Is the geographic area from where a retailer draws majority of its customers. • Primary zone – derives 60-65% • Secondary zone- 30-35% • Tertiary zone- 10-15%

  25. Anchor and parasite stores

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