Retailing MKTG 6211 Retailing Topics Professor Edward Fox Cox School of Business/SMU Retail Site Selection Openings Expansions Closings What are the effects of proposed changes in retail sites on the revenues of new and existing stores? Retail Site Selection Why Does It Matter?
Professor Edward Fox
Cox School of Business/SMU
What are the effects of proposed changes in retail sites on the revenues of new and existing stores?
According to Wal-Mart’s Real Estate group, the difference between good and bad locations exceed $25 million in gross profit
Recognizes that consumers may use multiple stores to meet their needs - shopping strategically!!
How does retail location affect multi-store shopping?
Relative to customers
Relative to other stores
Specifically, how are retailer revenues affected by nearby supermarkets, drug stores, mass merchandisers and supercenters, dollar stores and warehouse clubs?
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>50% of US households have computers
Source: Levy & Weitz and Census Bureau
Estimated Quarterly U.S. Retail E-commerce Sales as a Percent of Total Quarterly Retail Sales:4th Quarter 1999–2nd Quarter 2007
Percent of Total
Source: PCDataonline Jan 00-Jan 01