Key Issues






Retail Location I 7.1
Process of selecting a site
Retail growth strategies
Types of retail locations
Types of shopping centers
Trade area & trade area analysis
Methods to analyze trade areas
You own a single successful fresh juice
outlet, especially popular during
lunch & right after work.
You want to add a 2nd location.
What will you look for
as you shop for a site?
Where would you find
the information you need?
Retail Location I 7.2
If It’s In a Mall …
You own a single successful fresh juice
outlet, especially popular during
lunch & right after work.
You want to add a 2nd location.
If you were to locate your site
inside a mall, where would you
want to be?
Retail Location I 7.3
Location Analysis
Regional
Analysis
Area
Analysis
Site Analysis
Retail Location I 7.4
Selecting a Retail Site
The Expansion Stage
Use real estate firms, local personnel, etc.
to identify a large number of possible sites
The Qualitative Stage
Use checklists or examine performance of analogous
stores to screen possible sites for the best sites
The Quantitative Stage
Use quantitative modeling to further screen the likely
sites by generating forecasted potentials for each site
The Decision Stage
Make a site selection decision based on the results of
both the quantitative qualitative assessments
Retail Location I 7.5
Retail Development Strategies
Retail Location I 7.6
Old Product
New Product
Old
Market
Market
Penetration
Product
Development
New
Market
Market
Development
Product
Diversification
Sales
Retail Growth Strategies
Time
Retail Location I 7.7
Types of Retail Locations






CBDs & MXDs
Secondary shopping areas
Neighborhood shopping districts
Highway outlets
Freestanding units
Shopping centers
 Neighborhood
 Community
 Power center
 Regional & super-regional
 Strip mall
Retail Location I 7.8
Shopping Centers
A shopping center is a group of retail and other
commercial establishments that is planned,
developed, owned, and managed as a single
property.
Two main configurations:
 Strip centers have parking in front of the stores
and do not have enclosed walkways linking the
stores.
 Malls have a pedestrian focus; customers park in
outlying areas and walk to the stores. Traditional
malls are enclosed with walkways between two
facing strips of stores.
Retail Location I 7.9
Types of Shopping Centers
Features
Neighborhood
Community
Power Center
Concept
Convenience
General mdse,
convenience
Category-dominant
anchors
Usually not enclosed
Square
Feet
30,000 –
150,000
Number of
Anchors
One or more
Two or more
Three or more
Types of
Anchors
Supermarket
Discount store,
supermarket, home
improvement, warehouse
store, etc.
Discount store,
supermarket, home
improvement, warehouse
store, etc.
Trade
Area
~ 3 miles
3 – 7 miles
Less than 15 minutes
Source: Levy & Weitz
Retail Location I 7.10
Types of Shopping Centers
Features
Regional Mall
Super Regional
Outlet Mall
Concept
General mdse, fashion
Usually enclosed
Similar to regional but
with greater variety &
assortment
Mfr’s outlet stores
Square
Feet
400,000 –
800,000
Number of
Anchors
Three or more
Three or more
na
Types of
Anchors
Full-line dept store,
discount dept store
Full-line dept store,
discount dept store
Mfr’s outlet stores,
restaurants,
entertainment
Trade
Area
5 – 15 miles
5 – 25 miles
na
Source: Levy & Weitz
Retail Location I 7.11
The Largest U.S. Shopping Malls
Name
Location
Gross Leasable
Space in Square Feet
Mall of America
Bloomington, MN
4,200,000
Del Amo Fashion
Center
Torrance, CA
3,000,000
South Coast
Costa Mesa, CA
2,900,000
Plaza/Crystal Court
Woodfield Mall
Schaumberg, IL
2,700,000
SawGrass Mills
Sunrise, FL
2,300,000
Retail Location I 7.12
Retail Trade Areas
store
60 – 65%
of Customers
Retail Location I 7.13
Trade Area for
Provo Towne Centre?
Source of Map:
www.yahoo.com
Retail Location I 7.14
Trade Area Influences
 Accessibility
 roads
 natural obstacles
 other barriers (e.g., crime areas)
 Magnetism of store or shopping

center
Competition
 level of competition
 proximity to competitors
Retail Location I 7.15
Analyzing Retail Trade Areas:
A Site-Selection Framework
Source
of data
Delivery &
Billing
Analysis
Checklists
Customer
Spotting
Zip Code
Analysis
Trend
Analysis
Survey
Research
GIS
Software
2ndary
Research
Resident
data
Frequency of Shopping, Average Size of Purchase ($), Concentration of
Customers by Geographic Area, Age Distribution, Avg Educational Level,
% Home Ownership, Disposable & Per Capita Income, Occupational
Distribution, Trends
Competitor
data
No. & Size of Competitors, Sq Ft of Retail Space, Front Ft of Retail
Space, Saturation of Area (people/retailer, avg store sales, sales/capita,
sales/ft, sales/employee)
Retail Location I 7.16
New Site for Hogi Yogi
Source
of data
Delivery &
Billing
Analysis
Checklists
Customer
Spotting
Zip Code
Analysis
Trend
Analysis
Survey
Research
GIS
Software
What would be important in selecting a site?
Retail Location I 7.17
2ndary
Research
Typical Checklist for Site Evaluation
Local Demographics
Site Characteristics
•
•
•
•
•
•
•
Traffic Flow and Accessibility
•
•
•
•
•
•
•
•
Number of vehicles
Type of vehicles
Number of pedestrians
Type of pedestrians
Availability of mass transit
Access to major highway
Level of street congestion
Quality of access streets
Retail Structure
•
•
•
•
•
Number of competitors in area
Number and types of stores in area
Complementarity of neighboring stores
Proximity to commercial areas
Joint promotion by local merchants
Retail Location I 7.18
Number of parking spots available
Distance of parking areas
Visibility of site from street
Size and shape of the lot
Condition of existing building (if any)
Ingress and egress quality
Legal and Cost Factors
•
•
•
•
•
•
Type of zoning
Length of lease
Local taxes
Operations and maintenance costs
Restrictive clauses in lease
Voluntary regulations by local merchants
Source
of data
Delivery &
Billing
Analysis
Checklists
Customer
Spotting
Zip Code
Analysis
Trend
Analysis
Survey
Research
GIS
Software
Done among analog stores …
What would this yield?
Why would you do this?
How would you collect this information?
Parade Magazine
Winners
Retail Location I 7.19
2ndary
Research
Source
of data
Delivery &
Billing
Analysis
Checklists
Customer
Spotting
Zip Code
Analysis
Trend
Analysis
Survey
Research
GIS
Software
What kinds of questions might you ask?
Retail Location I 7.20
2ndary
Research
Source
of data
Delivery &
Billing
Analysis
Source: Claritas Corporation
Retail Location I 7.21
Checklists
Customer
Spotting
Zip Code
Analysis
Trend
Analysis
Survey
Research
GIS
Software
2ndary
Research
Source
of data
Delivery &
Billing
Analysis
Checklists
Customer
Spotting
Zip Code
Analysis
Link: http://www.esri.com/industries/business/business/site_selection.html
Retail Location I 7.22
Trend
Analysis
Survey
Research
GIS
Software
2ndary
Research
Source
of data
Delivery &
Billing
Analysis
Checklists
Customer
Spotting
Zip Code
Analysis
Trend
Analysis
Survey
Research
GIS
Software
2ndary
Research
Census Data
http://www.fedstats.gov/qf/states/49/49049.html
Land Area
Population
Age distribution
Gender
Household size, type
Marital status
Owner-occupied housing
Retail Location I 7.23
Rental status
Persons in unit
Race and ethnicity
Country of origin
Place of birth
Language spoken at home
School Enrollment
Educational Enrollment
Fertility
Departure time for work
Occupation
Class of worker
Disability
Income type
Poverty status
Utah
Statistics
Statistical
Abstract
Dept of
Census