Chapter 7
Retail Locations
Questions
7-3
Elements in Retail Mix
Location Strategy
Customer Service
Store Display
Merchandise
And Design
Assortment
Communication Mix
Pricing
7-4
What Are the
Three Most Important Things in Retailing?
7-5
Eddie Tan/Life File/Getty Images
Facts on Retail Space
7-6
Why is Store Location Important for a Retailer?
F. Schussler/PhotoLink/Getty Images
7-7
A) Types of Location
Types of Retail Locations
7-12
Selecting a particular location type
7-13
Tradeoff Between Locations
Rent
Traffic
7-14
Corner Influence and Old Navy
7-16
7-17
BDT 172,000/year
BDT 14,350/Month
US Average $300/month/sft
Apple Av $6,050/month/sft
Apple Av T4,84,000/month/sft
Apple Av $57/visitor
7-19
Types of Locations
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A.1) Unplanned Retail Locations
Advantage to Retailers:
•Affluence returned
•Young professionals
•Returned empty-nesters
•Incentives to move provided by cities
•Jobs!
•Low occupancy costs
•High pedestrian traffic The McGraw-Hill Companies, Inc./Andrew Resek, photographer
7-24
Central Business District (CBD)
Advantages
■
Disadvantages
7-25
Main Streets vs. CBDs
Magic Johnson
7-27
A.2) Shopping Centers
•Parking
•Security
•Parking lot lighting
•Outdoor signage
•Advertising
•Special events for customers
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Types of Shopping Centers
7-29
Neighborhood and Community Centers
Managed as a unit
Advantages
Disadvantages
Limited trade area
Lack of entertainment
No protection from weather
7-30
Power Centers
Shopping centers that consist primarily of collections of big-box retail
stores such as discount stores (Target), off-price stores (Marshall’s),
warehouse clubs (Costco), and category specialists (Lowe’s, Best
Buy, Dick’s)
PhotoLink/Getty Images
■ Convenient
■ Modest vehicular &
pedestrian traffic
■ Large trade areas
7-31
Shopping Malls
■ Regional shopping
malls (less than 1
million square feet)
■ Super regional malls
(more than 1 million
square feet)
7-32
Planned Shopping Centers
10-33
10-34
Advantages and Disadvantages of
Shopping Malls
Advantages:
Many different types of stores
Many different assortments available
Attracts many shoppers
Main Street for today’s shoppers
Never worry about the weather
Comfortable surrounding to shop
Uniform hours of operation
PhotoLink/Getty Images
Disadvantages:
Occupancy costs are high
Tenants may not like mall management control of operations
Competition can be intense
7-35
Challenge to Malls
7-36
Oct 10, 2011
RS 22,000 CRORE...
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Lifestyle Centers
Photo provided by ICSC and used with permission of Aspen Grove Lifestyle Center
7-39
Lifestyle Centers
7-40
Fashion Specialty Centers
7-41
Outlet Centers
These shopping centers contain mostly manufacturers and retail outlet stores
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7-43
Theme/Festival Centers
■ Located in places of
historic interests or for
tourists
■ Anchored by
restaurants and
entertainment facilities
7-44
Larger, Multi-format Developments:
Omnicenters
7-45
Mixed Use Developments (MXDs)
■ Combine several
different uses into one
complex, including
shopping centers, office
tours, hotels, residential
complexes, civic centers,
and convention centers.
■ Offer an all-inclusive
environment so that
consumers can work,
live, and play in a
proximal area
7-46
A.3) OTHER LOCATION OPPORTUNITIES
■ Airports
■ Resorts
■ Store within a Store
■ Temporary or pop-up stores
7-47
Alternative Locations
Airports
Captive audience
Well-to-do customer
Customers have time to shop
7-49
Royalty-Free/CORBIS
Alternative Locations
Store within a Store
7-51
Alternative Locations
Hospitals
7-52
Royalty-Free/CORBIS
B) Location & Retail
Strategy
Matching Location to Retail Strategy
7-54
Shopping Behavior of Consumers
in Retailer’s Target Market
7-55
Convenience Shopping
7-56
Comparison Shopping
Customers have a
good idea of what
type of product they
want, but don’t
have a strong
preference for
brand, model or
retailer.
Typical for furniture,
Competing retailers locate
appliances, apparel,
Near one another
consumer electronics,
hand tools and
cameras.
7-57
Ryan McVay/Getty Images
Category Specialists
Retailers’ Protection
Stipulate in the lease that the lessor is responsible for
removal and disposal of this material if it’s found.
Retailer can buy insurance that specifically protects it
from these risks.
7-61
C.2) Other Legal Issues