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Retail Management Chapter 6

The document discusses factors affecting retail store location decisions. It outlines three basic types of retail locations: freestanding stores, stores within business districts, and stores within shopping centers. The document also discusses how location impacts retail strategy and factors like shopping behavior, market size, and a store's offerings.

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Rechelle P. Soriano
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73 views

Retail Management Chapter 6

The document discusses factors affecting retail store location decisions. It outlines three basic types of retail locations: freestanding stores, stores within business districts, and stores within shopping centers. The document also discusses how location impacts retail strategy and factors like shopping behavior, market size, and a store's offerings.

Uploaded by

Rechelle P. Soriano
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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RETAIL STORE LOCATION

CHAPTER 6
IMPORTANCE OF
RETAIL LOCATION
DECISION

 Location is generally one of the most


important factors customers consider
while choosing a store.
 A bad location may cause a retailer to
fail even if its strategic mix is
excellent.
 On the other hand , a good location
may help a retailer succeed even if its
strategic mix is mediocre.
 Store location is the least flexible
element of retailer’s strategic mix
due to its fixed nature, the amount of
investment, and the length of lease
agreements.
IMPORTANCE OF
RETAIL LOCATION
DECISION
 Change in location gives three
potential problems:
Loss of loyal customers
and employees
New location may not
have the same
characteristics of old
location
Store fixtures cannot be
moved to new location
 Location affects a store’s long
run strategies
FACTORS AFFECTING
LOCATION

 Size and characteristics of


market (population)
 Level of competition
 Access to transportation
 Parking space availability
 Attributes of nearby stores
 Property costs
 Length of agreement
 Population trends
 Legal restrictions
BASIC TYPE OF
LOCATIONS

 1. Freestanding /Isolated
store.
 2. Part of Business
District/Centers
(unplanned Business
Districts).
 3. Part of a Shopping
Center (Planned Shopping
Centers)
I. FREESTANDING
/ISOLATED STORE
 Where there are no other outlets in
the vicinity of the store and
therefore store depends on its own
pulling power and promotion to
attracts customers.
 The biggest advantages for
freestanding stores is that there is
no competition around.
 This type of location has several
advantages including no
competition, low rent, often better
visibility from the road, easy
parking and lower property cost.
II. PART OF BUSINESS
DISTRICT/
CENTERS (UNPLANNED
BUSINESS DISTRICTS)
 A retail store can also be located as
a part of a business district. Or we
can refer this as unplanned
business centers
 A business district is place of
commerce in a city which
developed historically as the center
of trade and commerce in the city
or town.
 A Central Business District CBD is
the main center of commerce and
trade in the city. (high land rates ,
intense development)
III. PART OF A SHOPPING CENTER (PLANNED SHOPPING
CENTERS)
 A shopping center has been
defined as “ a group of retail and
other commercial establishments
that is planned , developed,
owned and managed as a single
property”
 The basic configuration of a
shopping center is a “Mall ” or
Strip center.
• A mall is typically enclosed and
climate controlled. A walkway is
provided in front of the stores.
• A strip center is a row of stores
with parking provided in the
front of the stores.
OTHER LOCATION
OPPORTUNITIES
 Airports
 Temporary Locations
 Resorts
 Store with in a store
 Merchandise Kiosks
 Shopping behavior of consumers in retail’s target
LOCATION AND market
RETAIL STRATEGY  Size of target market
 Uniqueness of retail offering
I. SHOPPING Shopping behavior of consumers in retail’s target market
BEHAVIOR OF  Three types of shopping situations:
CONSUMERS IN
Convenience Shopping, Comparison Shopping,
RETAIL’S TARGET
MARKET Specialty Shopping
THREE TYPES OF
SHOPPING SITUATIONS:

 Convenience Shopping
They are primary
concerned with
minimizing their efforts to
get the products or
services they want.

THREE TYPES OF Comparison Shopping
SHOPPING The purchase decision is more important to them, so they
SITUATIONS:
seek information and are willing to spend considerable effort
planning and making their purchase decision.
THREE TYPES OF SHOPPING SITUATIONS:

 Specialty Shopping
They know what they want and will not
accept a substitute. They are brand /
retailer’s loyal customer and will pay a
premium or spend extra if necessary, to get
exactly what they want.
II. SIZE OF
TARGET
MARKET
A GOOD LOCATION HAS
MANY PEOPLE IN THE
TARGET MARKET WHO
ARE DRAWN TO IT.
III.
UNIQUENESS
OF RETAIL
OFFERING
CUSTOMERS WILL
TRAVEL TO WHEREVER
THE STORE IS
LOCATED, AND ITS
LOCATION WILL
BECOME A
DESTINATION.
LEGAL CONSIDERATIONS

 Environmental Issue
 Zoning and Building Codes
 Licensing Requirements

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