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Cards In This Set
| Front | Back |
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■Currently
the U. S. has 20 square feet of retail space in shopping centers for every
person.
■The
highest country in the world
■The
second-highest country:
nSweden
– 3.1 square feet per person
|
Facts on retail space
|
|
Why
is Store Location Important for a Retailer?
|
■Location
is typically prime consideration in customer’s store choice.
■Location
decisions have strategic importance because they can help to develop
sustainable competitive advantage.
■Location
decisions are risky: invest or lease?
|
|
Types
of Retail Locations
|
■Free
Standing Sites
■City
or Town Locations
nInner
City
nMain
Street
■Shopping
Centers
nStrip
Shopping Centers
nShopping
Malls
■Other
Location Opportunities
|
|
Selecting
a particular location type
|
Involves evaluating a series of
trade-offs between
■The
size of the trade area (geographic area encompassing most of the customers who
would patronize a specific retail site)
■
the occupancy cost of the location
■The
pedestrian and vehicle customer traffic
■The
restrictions placed on store operations by the property manager
■The
convenience of the location for customers
|
|
Tradeoff
Between Locations
|
There are relative advantages and disadvantages to consider with each
location.btw rent and traffic
|
|
Unplanned
Retail Locations
|
Free standing sites, Merchandise
Kiosks
|
|
location for individual store unconnected to other retailer
|
■Freestanding
Sites –
|
|
n Convenience n High traffic and visibility n Modest occupancy cost n Separation from competition n Few restrictions |
■
Advantages of freestanding sites:
|
|
nNo foot traffic nNo drawing power |
■Disadvantages of free standing sites:
|
|
JCPenney, Sears, Walgreens are shifting to
|
Stand
alone locations
|
|
small temporary selling stations
located in walkways of enclosed malls, airports, train stations or office
building lobbies.
|
Merchandise Kiosks –
|
|
City
or Town Locations Advantage
to Retailers
|
•Affluence
returned
•Young
professionals
•Returned
empty-nesters
•Incentives
to move provided by cities
•Jobs!
•Low
occupancy costs
•High
pedestrian traffic
|
|
is bringing population
back to the cities.
|
Gentrification
|
|
Central
Business District (CBD) advantages and disadvantages
|
Advantages:
■Draws people into areas during business hours ■Hub for public transportation ■Pedestrian traffic ■Residents Disadvantages: ■High security required ■Shoplifting ■Parking is poor ■Evenings and weekends are slow |
|
■Occupancy
costs lower than CBDs
■They
don’t attract as many people
■There
are not as many stores
■Smaller
selections offered
■Not
as much entertainment
■Some
planners restrict store operations
|
Main
Streets vs. CBDs
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