Download - STORE LOCATION AND SITE EVALUATION
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
• LOCATION IS A MAJOR COST FACTOR-a) INVOLVES LARGE CAPITAL INVESTMENTb) AFFECTS TRANSPORTATION COSTc) AFFECTS HR COSTS
• LOCATION IS A MAJOR REVENUE FACTORa) IT EFFECTS THE CUSTOMER TRAFFICb) 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 close proximity.
• Rental cost low• No group rules
to be followed• Large space• Easy parking
• Difficulty in attracting customers.
• If far people will not travel
• Cost such as lighting security trash all has to be borne alone
• 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
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
• Variety of stores, services, products
• Customers
• Traffic • Parking • Frail
conditions of 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