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