Term
| Why is location so important? |
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Definition
-Location is typically the prime consideration in a customer’s store choice.
-Location decisions have strategic importance because they can help to develop sustainable competitive advantage.
-Location decisions are risky: long term, significant costs, buy or lease? |
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Term
| Types of Retail Locations |
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Definition
-Free Standing Sites
-City or Town Locations
Inner City
Main Street
-Shopping Centers
Strip Shopping Centers
Shopping Malls
-Other Location Opportunities |
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Term
| Selecting a store location |
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Definition
-The size of the trade area
-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 |
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Term
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Definition
| location for individual store unconnected to other retailer |
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Term
| Advantages of free standing stores |
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Definition
Convenience
High traffic and visibility
Modest occupancy cost
Separation from competition
Few restrictions |
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Term
| Disadvantages of free standing stores |
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Definition
No foot traffic
No drawing power |
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Term
| City or Town location Advantages |
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Definition
Affluence returned
Young professionals
Returned empty-nesters
Incentives to move provided by cities
Jobs!
Low occupancy costs
High pedestrian traffic |
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Term
| Central business district advantages |
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Definition
Draws people into areas during business hours
Hub for public transportation
Pedestrian traffic
Residents |
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Term
| Central business district disadvantages |
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Definition
High security required
Shoplifting
Parking is poor
Evenings and weekends are slow |
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Term
| Main Street vs. Central Business District |
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Definition
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 |
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Term
| Types of Shopping Centers |
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Definition
Neighborhood and Community Centers (Strip Centers)
Power Centers
Enclosed Malls
Lifestyle Centers
Fashion Specialty Centers
Outlet Centers |
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Term
| Neighborhood and community centers Advantages |
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Definition
Convenient locations
Easy parking
Low occupancy costs |
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Term
| Neighborhood and community centers disadvantages |
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Definition
Limited trade area
Lack of entertainment
No protection from weather |
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Term
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Definition
| Shopping centers that consist primarily of collections of big-box retail stores such as discount stores (Target), off-price stores (Marshall’s), warehouse clubs (Costco), and category specialists (Lowe’s, Best Buy, Dick’s) |
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Term
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Definition
Open air set up
Free-standing anchors
Limited small specialty stores
Many located near enclosed malls
Low occupancy costs
Convenient
Modest vehicular and pedestrian traffic
Large trade areas |
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Term
| Advantages of shopping malls |
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Definition
Many different types of stores
Many different assortments available
Attracts many shoppers
Main Street for today’s shoppers
Never worry about the weather
Comfortable surrounding to shop
Uniform hours of operation |
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Term
| Disadvantages of shopping malls |
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Definition
Occupancy costs are high
Tenants may not like mall management control of operations
Competition can be intense |
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Term
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Definition
-Usually located in affluent residential neighborhoods with upscale stores
-Includes 50K sq. ft. of upscale chain specialty stores
-Open-air configuration (South)
-Design ambience and amenities
-Restaurants and often a cinema or other entertainment
-Small department store format may be there |
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Term
| Fashion Specialty Centers |
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Definition
Upscale apparel shops
Tourist areas/central business districts
Need not be anchored
Décor is elegant
High occupancy costs
Large trade area
Ex. Phipps Plaza in Atlanta, Ceasar’s Palace in Las Vegas |
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Term
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Definition
Located in places of historic interests or for tourists
Anchored by restaurants and entertainment facilities
Union Station, Faneuil Hall (Quincy Market), Navy Pier |
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Term
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Definition
-Combine several different uses into one complex, including shopping centers, office tours, hotels, residential complexes, civic centers, and convention centers.
-Offer an all-inclusive environment so that consumers can work, live, and play in a proximal area |
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Term
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Definition
Rents are 20% higher than malls
Sales/square ft are 3-4 times higher than malls
Best airports are ones with many connecting flights |
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Term
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Definition
| small temporary selling stations located in walkways of enclosed malls, airports, train stations or office building lobbies. |
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Term
| Factors affecting the location choice |
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Definition
-Consumer Shopping Situations
Convenience shopping
Comparison shopping
Specialty shopping |
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Term
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Definition
| Minimize the customer’s effort to get the product or service by locating store close to where customers are located. Easy in…..easy out……fast. |
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Term
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Definition
-Customers have a good idea of what type of product they want, but don’t have a strong preference for brand, model or retailer.
-Competing retailers locate near one another (car dealer row). Shopping for apparel….want options.
-Typical for furniture, appliances, apparel, consumer electronics, and cameras. |
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Term
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Definition
Offer the benefits of comparison shopping
Consumers can see almost all brands and models in one store
Destination store = justify the trip to a single store |
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Term
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Definition
Environmental Impact
Zoning and building codes
Signs
Licensing Requirements |
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