Post on 03-Apr-2018
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RETAIL LOCATIONS
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What are the 3 most important things in
Retailing?
LOCATION, LOCATION & LOCATION
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SOME COMMON QUESTIONS TO
RETAILERS
Type of location available
Relative advantage of each location
Match of some locations to specific retail strategies
Locations gaining popularity among retailers
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TYPES
FREESTANDING/
ISOLATED
PART OF
BUSINESS
DISTRICT
PART OF
SHOPPING
CENTER
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1. ISOLATED/
FREESTANDING
Store located along a major traffic artery, withoutany competitive retailer around.
Low rents & ample parking
High advertising costs Willingness of customer to travel long distances
Nature of product
Eg: Gas stations, fast food restaurants on highwaysetc.
High shopping convenience, low pedestrian traffic,& high vehicular traffic.
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2. PART OF BUSINESS
DISTRICT
BD is the place of commerce in the city, or centre of
trade with no pre-set format
Can be classified as: Central, secondary or a
Neighbourhood Business District. CBD: Main centre of trade in the city, peak land rates &
intense developments, easy transport. Eg: CP in Delhi
Retailer may not have
to spend heavy on
attracting customers
but faces high rents &
cumbersome parking
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SBD: Evolved over a period of time with the spreadof population in the city
A city may have more than 1 SBD
Characterized by a good mix of retailers, relatively
small stores & adequate transportation NBD: an unplanned shopping area, developed to
serve the needs of the Neighbourhood.
Characterized by
presence of storeslike a supermarket,
stationary shops,
medical shops etc.
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3. PART OF SHOPPING
CENTER
Shopping Center: A group of retail & othercommercial establishments that is planned,developed, owned & managed as a single property.
- by ICSC
ICSC defined 8 basic types of Shopping centre:
NSC, CSC, RSC, SRC, FC, PC, TC & OC
BASIC CONFIGURATIONS : MALL & STRIPCENTER
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Mall
Enclosed, with a climate-controlled walkway
between two facing strips of stores.
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An attached row of stores or service outlets Managed as a coherent retail entity, with on-site
parking usually located in front of the stores.
Open canopies may connect the storefronts, butdoes not have enclosed walkways linking thestores.
May be configured in a straight line, or have an "L"or "U" shape.
STRIP CENTER
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a) NEIGHBOURHOOD
SHOPPING CENTRE
Designed to provide convenience shopping for theday-to-day needs of consumers in the immediateneighborhood.
Roughly half of these centers are anchored by asupermarket, while 1/3rd have a drugstore anchor.
Anchors are supported by stores offeringpharmaceuticals and health-related products,
sundries, snacks and personal services. Usually configured as a straight-line strip with no
enclosed walkway or mall area, although a canopymay connect the storefronts.
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B) COMMUNITY CENTER
Offers a wider range of apparel and other softgoods than the neighborhood center does.
Among the more common anchors aresupermarkets, super drugstores, and discount
department stores. Community center tenants sometimes contain off-
price retailers selling such items as apparel, homeimprovement/furnishings, toys, electronics or
sporting goods. The center is usually configured as a strip, in a
straight line, orL orU shape.
Of the eight center types, community centersencompass the widest range of formats.
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C) REGIONAL CENTER
This center type provides general merchandise (a
large percentage of which is apparel) and
services in full depth and variety.
Its main attractions are its anchors: traditional,mass merchant, or discount department stores or
fashion specialty stores.
A typical regional center is usually enclosed with
an inward orientation of the stores connected by a
common walkway and parking surrounds the
outside perimeter.
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D) SUPER REGIONAL
CENTER
Similar to a regional center, but because of its
larger size has more anchors, a deeper
selection of merchandise, and draws from a
larger population base. The typical configuration is as an enclosed mall,
frequently with multi levels.
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E) FASHION/SPECIALTY
CENTER
A center composed mainly of upscale apparelshops, boutiques and craft shops carrying selectedfashion or unique merchandise of high quality andprice.
Need not be anchored, although sometimesrestaurants or entertainment can provide the drawof anchors.
The physical design is very sophisticated,
emphasizing a rich decor and high qualitylandscaping.
These centers usually are found in trade areashaving high income levels.
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F) POWER CENTER
Dominated by several large anchors, including
discount department stores, off-price stores,
warehouse clubs, or "category killers," i.e., stores
that offer tremendous selection in a particularmerchandise category at low prices.
Typically consists of several freestanding
(unconnected) anchors and only a minimum
amount of small specialty tenants.
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G) THEME/FESTIVAL
CENTER
Typically employ a unifying theme that is carriedout by the individual shops in their architecturaldesign and, to an extent, in their merchandise.
The biggest appeal is to tourists; they can be
anchored by restaurants and entertainmentfacilities.
Generally located in urban areas, tend to beadapted from older, sometimes historic, buildings,
and can be part of mixed use projects.
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H) OUTLET CENTER
Usually located in rural or occasionally in touristlocations
Consist mostly of manufacturers' outlet stores
selling their own brands at a discount. Typically not anchored.
A strip configuration is most common, althoughsome are enclosed malls, and others can be
arranged in a "village" cluster.
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OTHER TYPES OF SC
Mixed Use Developments (MXDs): combineseveral different uses in one complex includingshopping centre, office towers, hotels, residential
complexes, civic centre & convention centre. Airports
Resorts
Hospitals
Store within a store
STEPS INVOLVED IN
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STEPS INVOLVED IN
CHOOSING A RETAIL
LOCATIONAfter identifying the region:
1. Identify the market:
2. Determine the market potential:
Demographics Characteristics of the area
Competition & compatibility
Trade Area Analysis (TA is the geographic areathat generates majority of the customers for thestore)
Laws & Regulation
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Trade Area
Often extends beyond the municipal boundaries of atown or city.
Can vary depending on factors like: nature of offerings
or the different market segments.
The potential of the trade area helps determine the no.
of stores that can be located.
Types: Primary, Secondary & tertiary
PTA: covers 50-80% of the store customers & is closestto the store
STA: contains the additional 15-25% of the store
customers.
TTA: covers the balance customers.
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3. Identify Alternate sites & select the site (Traffic,
Accessibility, amenities, buy/lease, product mix
offered)
Refer: Preliminary assessment check list for a
store location & Site visit report
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SHOPPING BEHAVIOUR OF
CONSUMERS IN RETAILERS
TARGET MARKETThree types of shopping situations in which the
consumers involve are:
1. Convenience shopping: Indifference towards brands orretailers image.
Minimize efforts to get products
Low evaluation Targeted by Convenience stores
Located in NBD
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2. Comparison Shopping
Consumers are not much brand or store loyal
but spend considerable efforts on evaluation.
Generally applicable to home appliances,
gadgets, apparel etc. Malls, Specialty stores & Category specialist
comes under this, offering a huge range to
compare.
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3. Specialty Shopping
Consumers are well aware of what they need & do
not accept any substitute.
Brand/store loyal
Ready to pay a premium or spend extra effort.
Eg: buying specific branded perfumes. Dress etc.
Ready to travel far-off locations
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LEGAL
CONSIDERATIONS
1. Laws regarding how land is used
2. Environmental Issues:
Asbestos containing materials or lead pipes used
in construction.
Hazardous materials stored in the ground
3. Zoning & Building codes:
Some parts of the city are zoned as: Residential,light industrial & retail use.
BCs are similar legal restrictions specifying the
type of building, signs, size & type of parking lot.
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4. Signs
Restrictions on the use of signs. Eg: SALE signs
must also be approved by shopping center
management prior implementation.5. Licensing
Sale of alcoholic beverages