strategic planning
DESCRIPTION
Strategic planningTRANSCRIPT
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PPT 7-1
5thEdition
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PPT 7-2
McGraw-Hill/IrwinLevy/Weitz: Retailing Management, 5/e Copyright !""# $y %he McGraw-Hill Companie&, Inc' (ll right
Retail LocationsRetail Locations
Chapter 7Chapter 7
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PPT 7-3
Retailing Strategy
Retail Locations
Chapter 7
Site Locations
Chapter 8
Human Resource
Management
Chapter 9
Information and
Distribution
Systems
Chapter !
Customer
Relationship
Management
Chapter
Retail Mar"et and
#inancial Strategy
Chapter $% &
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PPT 7-4
What Are theThree Most Important Things in Retailing?
Location! Location! Location!
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PPT 7-5
Retail Locations
Shopping Centers
Strip Shopping Centers
Shopping Malls
City or 'o(n Locations
Inner City
Main Street
#ree Standing Sites
)ther Location )pportunities
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PPT 7-6
Types of Strip Shopping Centers
'raditional
Mom and *op Local Merchants%Children+s *lace% ,ap-ids%.loc"buster /ideo
*o(er Centers
'arget% Home Depot% )ffice Depot%*etsMart% .est .uy% Sports 0uthority%'oys R 1s
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Elements in Retail Mi
CstomerSer"ice
Merchan#iseAssortment
$ricingCommnication
Mi
Store %isplayAn# %esign
Location Strategy
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Strip Shopping Centers
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Types of Shopping Malls
Regional Centers
Sperregional Centers
Lifestyle Centers&ashion'Specialty Centers
(tlet Centers
Theme'&esti"al Centers
Merchan#ise )ios*s
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Shopping Malls
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The Largest +,S, Shopping Malls
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$ro-lems &acing Regional Malls
. Competition from Alternati"e/ MoreCon"enient Locations
. &ocs on Apparel Wea* Apparel Sales
. Aging
. %emographic Shifts
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The Most Epensi"e ShoppingStreets in the Worl#
Street Location Cost 2 s3 foot 2 year
&ifth A"ene 012th to32th St,4
37th Street 03th A"e,to Ma#ison A"e,4
(for# Street
Ma#ison A"ene 037thto 75n# St,4
A"e, #es ChampsElysee
6e 8or* City
6e 8or* City
Lon#on
6e 8or* City
$aris
932:
93::
91::
9;73
9;
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Tra#eoff =eteen Locations
Rent
'raffic
There are relati"e a#"antagesan# #isa#"antages to consi#erith each location,
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Relati"e A#"antagesof Ma>or Retail Locations
Location City Strip Shopping #ree
Issues Center Mall Standing
Large sie @ @ #ras people
to area$eople @ @ or*ing'li"ing
in area
pro"i#e# sorce
of cstomers
Sorce of ? @ entertainment'
recreation
$rotection @
against eather
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Relati"e A#"antagesof Ma>or Retail Locations
Location C.D Strip Shopping #ree
Issues Center Mall Standing
Secrity @
Long/ niform @ @ @hors ofoperation
$lanne# @ shopping
area'-alance#
tenant mi
$ar*ing @ @
(ccpancy ? @ @costs
0e,g, rent4
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Relati"e A#"antagesof Ma>or Retail Locations
Location City Strip Shopping #ree
Issues Center Mall Standing
$e#estrian @ @ traffic
Lan#lor# @ @ @control
Strong @ @ @competition
Ta ? ? ? ?incenti"es
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(ther Retail Location (pportnities
Mie# +se %e"elopments
AirportsResortsBospitalsStore ithin a Store
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PPT 7-19
Matching Location to Retail Strategy
. %epartment StoresRegional Mall
. Specialty ApparelCentral =siness %istrict/
Regional Malls. Category Specialists$oer Centers/
&ree Stan#ing
. rocery StoresStrip Shopping Centers
. %rg StoresStan# Alone
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PPT 7-20
Types of Leases
$ercentage
&ie# Rate
$ercentage leases lease based ona % of sales,
Retailers also typically pay a maintenance fee
-ase# on a percentage of their sDare footage oflease# space,
Most malls se some form of percentage lease,
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PPT 7-21
ariations of $ercentage Leases
$ercentage lease ith specifie# maimmpercentage of sales p to a maimm amont,
Rear#s retailer performance -y alloing retailer
to hol# rent constant a-o"e a certain le"el of sales
$ercentage lease ith specifie# minimmretailer mst pay a minimm rent no matter ho
lo sales are,
Sli#ing scale percentage of sales as rent#ecreases as sales go p,
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PPT 7-22
&ie# Rate Leases
#i4ed Rate Leases used by community andneighborhood centers5
6Retailer pays a fi4ed amount per month oer the life
of the lease5
6ot as popular as percentage leases
,raduated Lease a ariation of the fi4ed ratelease
6Rent increases by a fi4ed amount oer a specified
period of time5
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PPT 7-23
$ercentage or &ie# Rate Leases
Maintenanceincreaserecopmentlease se# ith either a percentage or
fie# rate lease,
Rent increases if insrance/ property
taes/ or tility -ills increase -eyon# acertain point,
6et lease retailer is responsi-le for all
maintenance an# tilities,
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PPT 7-24
$rohi-ite# +se Clase
Limits the lan#lor# from leasing to certain tenants,
Some tenants ta*e p par*ing spaces an# #onFt
-ring in shoppersG bowling alley, skating rink,meeting hall, dentist, or real estate office,
Some tenants col# harm the shopping centerFs
holesome imageG bars, pool halls, game parlors,off-track betting establishments, massage parlors
and pornography retailers.
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PPT 7-25
Eclsi"e +se Clase
$rohi-its the lan#lor# from leasing to retailersselling competing merchan#ise
Specify no outparcels
Specify if certain retailer leaes center% they can
terminate lease,
Escape Clase
0llo(s the retailer to terminate its lease if sales don+treach a certain leel after a specified number of
years% or if a specific co6tenant in the center
terminates its lease5
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PPT 7-26
En"ironmentalIsses
HA-o"egron# ris*s such as asbestos6containingmaterials or lead pipes used in construction,
Baar#os materials e5g5 dry cleaning chemicals%motor oil% that hae been stored in the ground,
RetailersF $rotection
Stipulate in the lease that the lessor is responsible
for remoal and disposal of this material if it+sfound5
Retailer can buy insurance that specifically
protects it from these ris"s5
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PPT 7 27
(ther Legal Isses
oning and .uilding Codesoning determines ho( a particular site can be
used5
.uilding codes determine the type of building%
signs% si:e% type of par"ing lot% etc5 that can beused
Signs
Restrictions on the use of signs can also impact
a particular site+s desirability
Licensing Re3uirements
Some areas may restrict or re3uire a license for
alcoholic beerages