Retail Locations. Location is the prime consideration in a customer’s store choice. Types of Location. Shopping Centers - Strip Shopping Centers - Shopping Malls City or Town Locations - Central Business Districts (CBD) Freestanding Sites Other Retail Location Opportunities
Retail Locations Location is the prime consideration in a customer’s store choice .
Types of Location Shopping Centers - Strip Shopping Centers - Shopping Malls City or Town Locations - Central Business Districts (CBD) Freestanding Sites Other Retail Location Opportunities • Mixed-use Developments (MXDs) • Airports • Resorts • Hospitals • Store within a store
SHOPPING CENTRES Shopping Centre is a group of retail & other commercial establishment that is planned , developed, owned & managed as a single property . 2 main configurations Shopping malls Shopping centers in which Customers park in outlying Areas and walk to the stores. Strip Shopping Centers Shopping centers that usually have a parking directly in front of the stores.
Strip Shopping Centers • Traditional Strip Centre :- shopping centre that is designed to provide convenient shopping for the day-to-day needs of consumers in their immediate neighborhood. • Power Centers :- shopping center that is dominated by several large freestanding anchors.
Shopping Malls • Regional :- General Merchandise , fashion mainly , main attractions are its anchors , department & discount stores or fashion specialty stores . • Superregional Centers :- similar to regional centre but larger size.Has more variety & assortment • Lifestyle :- Higher end,fashion oriented . • Fashion /speciality centers • Outlet:- manufacturers outlet stores • Theme/Festival Centers :- unifying theme in individual shops & also to an extend in merchandise . • Merchandise Kiosks :- small selling spaces offering a limited merchandise assortment . Found in shopping malls .
CITY OR TOWN LOCATIONS Central Business Districts :- business area in a city or town . CBDs for retail trade are those with a large number of residents living the area . Inner City Locations :- typically high density urban areas . Main Street Locations :- CBD located in traditional shopping area of small town or suburb within a larger city . Occupancy costs are genrally lower than primary CBD . FREESTANDING SITES Retail location that’s not connected to other retailers , although many are located adjacent to malls
OTHER RETAIL LOCATION OPPORTUNITIES Mixed-Use Developments (MXDs) :-combine several different uses in one complex , including shopping centres, office towers, hotels, residential complexes, civic centers , and convention centers . Popular with retailers because they bring additional shoppers to their stores. - Airports • Resort • Hospitals • Store within a store
Regional Analysis Trade Area Analysis Site Analysis Site Selection Region :- refers to the country , part of the country , a particular city or Metropolitan Statistical Area (MSA) :- city with 75,000 (in england) inhabitants , urbanized area . Trade Area :- contiguous geographical area. That accounts for majority of stores sales & customers . Maybe a part of city or may extend beyond the city’s boundaries .
Factors Affecting The Demand for a Region or Trade Area • Economies of scale • Demographic & Lifestyle Characteristics • Business Climate :- employment level , cyclical trends etc. • Competition - Saturated Trade area Ex:- some restaurants such as Burger king seek locations where their major competition-McDonald’s has a strong presence . They believe that it is important to go head-to-head with their strongest competitors so that they can develop methods & systems that will allow them to successfully compete with them . - Understored Trade area An area that has too few stores selling a specific good or service to satisfy good or service to satisfy the needs of the population - Overstored Trade area Having so many stores selling a specific good or service that some stores will fail .
Span of Managerial Control focus on certain geographic regions or trade areas. - Global Location Issues FACTORS AFFECTING THE ATTRACTIVENESS OF A SITE • Accessibility • Macro Analysis • - Road Patterns • - Natural Barriers • - Artificial Barriers • Micro Analysis • - visibility • - Amount & quality of parking facilities • - Congestion • Location Advantages within a Center • - Principle of Cumulative Attraction :- applies to both • stores that sell complementary merchandise & those • that compete directly with one another .
Estimating Demand for a New Location Retailers estimate the demand for a new location by defining its trade area & then estimating how much people within the trade area will spend. Trade Area :- divided into 2 to 3 zones • Primary Zone :- geographic area from which store derives 60 to 65% of its customers . • Secondary Zone :- geographic area from which store derives 20% of its customers/sales . • Tertiary Zone :- outermost ring :- customers who occasionally shop from the store .
Factors defining Trade Areas • Store Accessibility • Natural & Physical Barriers • Type of Shopping area • Competition • Type of Store • Destination store :- is one in which the merchandise , selection , presentation , pricing or other unique features act as a magnet for customers . • Parasite Store :- one that does not create its own traffic & whose trade area is determined by the destination or dominant retailer in the retail area.
Sources of Information to define a Trade Area • Determine no. of people /potential customers) & where they live Technique :- -Customer Spotting -Census -Demographic data & GIS (Geographical Information Systems) -ACORN ( A Classification of Residential Neighborhoods) -MPI (Market Potential Index) -SPI (Spending Potential Index) 2. Sources to assess competition .