Key Issues Process of selecting a site Retail growth strategies Types of retail locations Types of shopping centers Trade area & trade area analysis Methods to analyze trade areas

You own a single successful fresh juice outlet, especially popular during lunch & right after work. You want to add a 2nd location. What will you look for as you shop for a site? Where would you find the information you need?

If It’s In a Mall … You own a single successful fresh juice outlet, especially popular during lunch & right after work. You want to add a 2nd location. If you were to locate your site inside a mall, where would you want to be?

Location Analysis Regional Analysis Area Analysis Site Analysis

Selecting a Retail Site The Expansion Stage Use real estate firms, local personnel, etc. to identify a large number of possible sites The Qualitative Stage Use checklists or examine performance of analogous stores to screen possible sites for the best sites The Quantitative Stage Use quantitative modeling to further screen the likely sites by generating forecasted potentials for each site The Decision Stage Make a site selection decision based on the results of both the quantitative qualitative assessments

Retail Development Strategies Old Product New Product Market Penetration Product Development Old Market Market Development Product Diversification New Market

Retail Growth Strategies Sales Time

Types of Retail Locations CBDs & MXDs Secondary shopping areas Neighborhood shopping districts Highway outlets Freestanding units Shopping centers Neighborhood Community Power center Regional & super-regional Strip mall

Shopping Centers A shopping center is a group of retail and other commercial establishments that is planned, developed, owned, and managed as a single property. Two main configurations: Strip centers have parking in front of the stores and do not have enclosed walkways linking the stores. Malls have a pedestrian focus; customers park in outlying areas and walk to the stores. Traditional malls are enclosed with walkways between two facing strips of stores.

Types of Shopping Centers Features Neighborhood Community Power Center Concept Convenience General mdse, convenience Two or more Discount store, supermarket, home improvement, warehouse store, etc. 3 – 7 miles Category-dominant anchors Usually not enclosed Three or more Discount store, supermarket, home improvement, warehouse store, etc. Less than 15 minutes Square Feet 30,000 – 150,000 Number of Anchors One or more Types of Anchors Supermarket Trade Area ~ 3 miles Source: Levy & Weitz

Types of Shopping Centers Features Regional Mall Super Regional Outlet Mall Concept General mdse, fashion Usually enclosed Similar to regional but with greater variety & assortment Three or more Full-line dept store, discount dept store 5 – 25 miles Mfr’s outlet stores na Mfr’s outlet stores, restaurants, entertainment Square Feet 400,000 – 800,000 Number of Anchors Three or more Types of Anchors Full-line dept store, discount dept store Trade Area 5 – 15 miles Source: Levy & Weitz

The Largest U.S. Shopping Malls Name Location Gross Leasable Space in Square Feet Mall of America Del Amo Fashion Center South Coast Plaza/Crystal Court Woodfield Mall SawGrass Mills Bloomington, MN Torrance, CA Costa Mesa, CA Schaumberg, IL Sunrise, FL 4,200,000 3,000,000 2,900,000 2,700,000 2,300,000

Retail Trade Areas Primary Trading Area 60 – 65% of Customers store

Trade Area for Provo Towne Centre? Source of Map: www.yahoo.com

Trade Area Influences Accessibility roads natural obstacles other barriers (e.g., crime areas) Magnetism of store or shopping center Competition level of competition proximity to competitors

Analyzing Retail Trade Areas: A Site-Selection Framework Delivery & Billing Analysis Check- lists Customer Spotting Zip Code Analysis Trend Analysis Survey Research 2ndary Research Source of data GIS Software Frequency of Shopping, Average Size of Purchase ($), Concentration of Customers by Geographic Area, Age Distribution, Avg Educational Level, % Home Ownership, Disposable & Per Capita Income, Occupational Distribution, Trends Resident data Competitor data No. & Size of Competitors, Sq Ft of Retail Space, Front Ft of Retail Space, Saturation of Area (people/retailer, avg store sales, sales/capita, sales/ft, sales/employee)

New Site for Hogi Yogi Source of data Delivery & Billing Analysis Check- lists Customer Spotting Zip Code Analysis Trend Analysis Survey Research 2ndary Research Source of data GIS Software What would be important in selecting a site?

Typical Checklist for Site Evaluation Local Demographics Traffic Flow and Accessibility Number of vehicles Type of vehicles Number of pedestrians Type of pedestrians Availability of mass transit Access to major highway Level of street congestion Quality of access streets Retail Structure Number of competitors in area Number and types of stores in area Complementarity of neighboring stores Proximity to commercial areas Joint promotion by local merchants Site Characteristics Number of parking spots available Distance of parking areas Visibility of site from street Size and shape of the lot Condition of existing building (if any) Ingress and egress quality Legal and Cost Factors Type of zoning Length of lease Local taxes Operations and maintenance costs Restrictive clauses in lease Voluntary regulations by local merchants

Source of data Done among analog stores … What would this yield? Delivery & Billing Analysis Check- lists Customer Spotting Zip Code Analysis Trend Analysis Survey Research 2ndary Research Source of data GIS Software Done among analog stores … What would this yield? Why would you do this? How would you collect this information? Parade Magazine Winners

What kinds of questions might you ask? Delivery & Billing Analysis Check- lists Customer Spotting Zip Code Analysis Trend Analysis Survey Research 2ndary Research Source of data GIS Software What kinds of questions might you ask?

Delivery & Billing Analysis Check- lists Customer Spotting Zip Code Analysis Trend Analysis Survey Research 2ndary Research Source of data GIS Software Source: Claritas Corporation

Delivery & Billing Analysis Check- lists Customer Spotting Zip Code Analysis Trend Analysis Survey Research 2ndary Research Source of data GIS Software Link: http://www.esri.com/industries/business/business/site_selection.html

Source of data Census Data Delivery & Billing Analysis Check- lists Customer Spotting Zip Code Analysis Trend Analysis Survey Research 2ndary Research Source of data GIS Software Census Data Land Area Population Age distribution Gender Household size, type Marital status Owner-occupied housing Rental status Persons in unit Race and ethnicity Country of origin Place of birth Language spoken at home School Enrollment Educational Enrollment Fertility Departure time for work Occupation Class of worker Disability Income type Poverty status Utah Statistics http://www.fedstats.gov/qf/states/49/49049.html Statistical Abstract Dept of Census