STORE LOCATION AND SITE EVALUATION
LOCATION VS SITE
• LOCATION IS A BRODER CONCEPT WHICH DENOTES
THE STORE AND ITS AREA FROM WHERE A
MAJORITY OF CUSTOMERS ORIGNATE .
• A SITE REFERS TO THE SPECIFIC BUILDING OR PART
OF THE BUILDING IS LOCATED.
• YOU CAN HAVE A GOOD LOCATION BUT A BAD SITE.
LOCATION
• LOCATE IN HASTE REPENT AT LEISURE
• COMPETITIVE ADVANTAGE
• LOCATION IS THE PRIME CONSIDERATION IN A CUSTOMERS STORE CHOICE
•
a)
b)
c)
LOCATION IS A MAJOR COST FACTORINVOLVES LARGE CAPITAL INVESTMENT
AFFECTS TRANSPORTATION COST
AFFECTS HR COSTS
• LOCATION IS A MAJOR REVENUE FACTOR
a) IT EFFECTS THE CUSTOMER TRAFFIC
b) VOLUME OF BUSINESS
L EVELS OF LOCATION
DECISION
• SELECTION OF CITY
• SELECTION OF AREA, OR
LOCATION WITHIN A CITY
• IDENTIFICATION OF A Specific
SITE
SELECTION OF CITY
•
•
•
•
Size of the city trading area
Population growth in the trading area
Total purchasing power and its distribution.
Total retail trade potential for different lines
of trade- a city might become a specialist in
certain line of trade and attract customers
from other cities.
• Number and quality of competition
• Development cost
Hub and spoke concept
Selection of an area or type
of location within a city
• Customer attraction power of
shopping district.
• Competitive store
• Availability of access routes
• Nature of zoning regulations
• Direction of the spread of the city
Types of retail locations
• Freestanding sites/ isolated stores
• There are no other retail outlet in the
vicinity of the store therefore the store
depends on its own pulling power and
promotion to attract customers.
Advantages &
disadvantages
• No competition in • Difficulty in attracting
close proximity.
customers.
• Rental cost low
• If far people will not
travel
• No group rules to
be followed
• Cost such as lighting
security trash all has
• Large space
to be borne alone
• Easy parking
• Store may have to be
built not rented
Business associated location
• Where a group of retail outlets offering a
variety of merchandize work together to
attract customers to their retail area, but
also compete with each other for the
same customer. They are further
classified as• (A) unplanned business district
• (B) planned shopping center
Isolated
locations
Business
associate
d location
Planned shopping
center
Unplanned
business district
Central
business
district
Neighbor
hood
business
District
Seconda
ry
business
district
Specialized
market
Strings
Regional
shopping
center
Neighbor
hood
shopping
center
Unplanned business districts
• An unplanned business district is a retail
location where two or more stores locate
together or in close proximity in such a
way that the total arrangement is a mix of
stores is not due to proper long run
planning,
• Stores based on what is best for them
and not for the district.
Central business district
• Is the hub of retailing.
• Is synonymous with down town.
• They draw people from far flung
places
• Depending on the city area can be
more than one CBD
Advantages and
disadvantages
• Public transport •Traffic
• Variety of
•Parking
stores, services,
•Frail
products
conditions of
• Customers
stores
•High rent
Secondary business district
• Unplanned shopping area in a city or
town that is usually located on a
major intersection of a city.
• SBD is smaller than that of CBD
Neighborhood Business
District
• Appeals to single residential area .
STRINGS
• An group of retailers located near a
highway or isolated place.
• Starts as an isolated venture and
grows as more stores come in to form
a string.
The planned shopping center
• Consists of a group of architecturally
owned or managed stores designed
& operated as a unit based on
balanced tenancy & surrounded by
parking facility.
• Size & mix depends on the type of
trading area.
ADVANTAGES
• Well rounded assortments of goods
and services based on long range of
planning
• One stop family shopping
• Cooperative planning and cost
sharing
• parking
REGIONAL SHOPPING
CENTER
• Large planned shopping centers,
serves large trading area, high rent,
food court and entertainment facility.
NEIGHBORHOOD
SHOPPING CENTER
• Moderate size, attract the
neighborhood, start planned and then
become unplanned .
SPECIALIZED MARKET
• Market famous for a particular
product categories.
Site selection
• Adequacy and potential traffic passing
the store.
• Complimentary nature of adjacent
store.
• Parking
• Accessibility
• Visibility
• cost
TRADE AREA
• Is the geographic area from where a
retailer draws majority of its
customers.
• Primary zone – derives 60-65%
• Secondary zone- 30-35%
• Tertiary zone- 10-15%
Anchor and parasite stores