- Store location is most often the first consideration in a store choice - Having a good location increases chances of developing a strong sustainable competitive advantage - Location decisions can be risky and should be well-thought out
* Involves large capital investment * Affects transportation costs * Affect human resource costs
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* Size & characteristics of
population
*Process of choosing
Retail Location
Questions:
* What types of locations are available to
retailers?
Selection of city Size of citys trading area Population & growth trends Purchasing power & its distribution No., size & quality of competition
- Shopping behavior of
consumers
Shopping Situations
Convenience Goods
- Wants convenient location - Central business districts - Less concerned with price - No hassles
Shopping Goods
General idea about product or service Relatively High unit price Intensive selling efforts Comparison Buy infrequently &deliberately planned Can travel to buy
Specialty Shopping
- Estimate max # of customers eligible to purchase product or service Estimate percentage of potential customers Estimate # times customers could purchase the product or service in a year Estimate highest density of target market
Legal Considerations
Environmental Issues
- Example: Grocer, highway dhabas, Pantaloon, Peter England in Nagpur, Lifestyle in Bangalore, McDonalds on Mumbai- Pune highway.
- Usually located where there is little pedestrian traffic Lack of variety for shoppers
Freestanding Sites
Retail locations for an individual, isolated store unconnected to other retailers
Outparcels
Merchandise Kiosks
Merchandise kiosks
Small selling spaces, typically located in the walkways of enclosed malls, airports, train stations, or office building lobbies.
Site Location Shoppers Stop is a free standing store, mostly located away from central business district. Thistype of retail location is basically any stand-alone building. It can be tucked away in aneighborhood location or right off a busy highway. Depending on the landlord, there aregenerally no restrictions on how a retailer should operate his business. It will probably haveample parking and the cost per square foot will be reasonable. The price for all that freedom may be traffic. Unlike the attached retail locations where customers may wander in because they wereshopping nearby, the retailer of a free standing location has to work at marketing to get thecustomer inside.
- Small cluster - Lower occupancy costs - Higher pedestrian traffic - Nearness & availability
- Draws people during business hours - Heavy public transportation - Pedestrian traffic - Residential area as well
- Shoplifting
- Parking is poor - Evenings and weekends are slow
- Occupancy costs are generally lower than CBDs - Fewer people are employed - Smaller selection due to fewer stores - Range of entertainment is usually smaller
Shopping Malls
Largest planned shopping centres
Theme/Festival centers
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mobile caterers: bringing the mountain to Mohammad Office-goers are always on the look-out for quick, simple and costeffective options for lunch. meals on wheels
Airports
- High pedestrian traffic - Sales per square foot are
higher than mall stores
Store-in-store
Resorts
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* Agglomeration captures the countervailing effects of
complementarily and competition among retailers
shopping, and offers a wider variety of goods to choose from * Examples: shopping centers and shopping malls
Recognizes that consumers may use multiple stores to meet their needs - shopping strategically!!
Beauty Parlors within large college campuses or Ladies hostel Sports goods and apparel inside or opposite Gyms
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Location is a strategically important decision in the hospitality industry The final model had only four variables
Price of the inn/ Positioning income levels State population per inn Location of nearby colleges