Retail Locations Unit 2

7/29/2019 Retail Locations Unit 2

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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

Retail Locations Unit 2

Documents