Chapter 7: Store Location Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved

Three Key Factors of Store Location A trading area that best serves the needs of the organization Exploration of available shopping districts within desired trading area Choice of exact site of store location Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved

Destination Location A retailer with a large trading area due to the special nature of their products or customer service. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved

Analysis of Trading Area Population Characteristics Income level Age group needs Occupational-related needs Marital status Household permanency Religious affiliation Population shifts Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved

Analysis of Trading Area Area Characteristics Tourism Accessibility to trading area Local legislation Amount of competition Advertising media Human resources availability Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved

Shopping Districts Classification Part One Downtown Central Districts Inner Cities Regional Malls Vertical Malls Mixed Use Centers Power Centers Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved

Shopping District Classification Part Two Off-Price and Outlet Centers Festival Marketplace Fashion ‘Streets’ Transportation Terminals Freestanding Stores Neighborhood Clusters Strip Centers Flea Markets Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved

Downtown Shopping Districts Customer Base Area residents Area workers Flagship base (traditional) Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved

Regional Malls Post WWII population shift Originally, controlled competition to enhance store profitability Use of anchor stores Contemporary design incorporates shopping, entertainment, and food facilities Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved

Vertical Malls The utilization of a large structure in an urban setting to house multiple retailers on numerous floors of the structure. The customer base is inclusive of nearby residents, office workers, and tourists. Chicago is noted for this type of mall. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved

Site Selection Competition Neighboring Tenants Transportation Accessibility Pedestrian Traffic Entertainment and Dining Facilities Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved

Occupancy Considerations Leasing Ownership Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved

Trends in Store Location Expansion/Refurbishment of Existing Malls Transformation of Historical Buildings Sharing of Expenses Vertical Mall Development Outlet Center Specialization Downtown Revitalization Multiuse Centers Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved