Chapter 12: Location & Layout1 Copyright 2002 Prentice Hall Publishing Company Choosing the Right Location and Layout

Chapter 12: Location & Layout2 Copyright 2002 Prentice Hall Publishing Company Choosing a Location n The right region of the country n The right state in the region n The right city in the state n The right site in the city

Chapter 12: Location & Layout3 Copyright 2002 Prentice Hall Publishing Company Retail and Service Location Considerations n Trade area size  Retail compatibility  Degree of competition  Index of retail saturation (IRS)  Transportation network  Physical, racial, or emotional barriers  Political barriers

Chapter 12: Location & Layout4 Copyright 2002 Prentice Hall Publishing Company Retail and Service Location Considerations n Customer traffic n Adequate parking n Reputation n Room for expansion n Visibility (continued)

Chapter 12: Location & Layout5 Copyright 2002 Prentice Hall Publishing Company Retail and Service Location Options n Central Business Districts (CBDs) n Neighborhood locations n Shopping centers and malls  Neighborhood shopping centers  Community shopping centers  Regional shopping centers  Power centers

Chapter 12: Location & Layout6 Copyright 2002 Prentice Hall Publishing Company Shopping Centers and Malls n Neighborhood Shopping Centers  3 to 12 Stores; anchor is supermarket or drugstore n Community Shopping Centers  12 to 50 stores; anchor is department or variety store n Regional Shopping Malls  50 to 100 stores; anchor is one or more major department stores n Power Centers  Combines drawing power of a mall with convenience of neighborhood shopping center

Chapter 12: Location & Layout7 Copyright 2002 Prentice Hall Publishing Company Retail and Service Location Options n Near competitors n Outlying areas n Home-based businesses (continued)

Chapter 12: Location & Layout8 Copyright 2002 Prentice Hall Publishing Company Layout: External Factors n Adequate size to accommodate business needs. n Create the proper image or “personality” for the business in the customer’s eyes. n Entrances must invite customers to come in.

Chapter 12: Location & Layout9 Copyright 2002 Prentice Hall Publishing Company Layout: External Factors n Create effective window displays and change them often; they can be powerful sales tools. n Must comply with Americans with Disabilities Act. n Pay attention to the business sign, the most direct method of reaching potential customers. (continued)

Chapter 12: Location & Layout10 Copyright 2002 Prentice Hall Publishing Company A Business Sign n Tells potential customers who you are and what you’re selling. n Must comply with local sign ordinances. n Should be visible, simple, and clear. n Should be changed periodically to avoid becoming part of the background. n Should be legible both day and night. n Must be maintained properly.

Chapter 12: Location & Layout11 Copyright 2002 Prentice Hall Publishing Company Building Interiors n Ergonomics is an integral part of any design. n Proper layout and design pays off in higher productivity, efficiency, or sales. n Proper lighting is measured by what is ideal for the job being done. n Careful selection of colors can create the desired impressions among customers and employees. n Appealing to all of the customer’s senses can boost sales.

Chapter 12: Location & Layout12 Copyright 2002 Prentice Hall Publishing Company Three Layout Patterns n Grid  Rectangular with parallel aisles; formal; controls traffic flow; uses selling space efficiently  Supermarkets and self-service discount stores

Chapter 12: Location & Layout13 Copyright 2002 Prentice Hall Publishing Company Three Layout Patterns n Free-Form  Free-flowing; informal; creates “friendly” environment; flexible  Small specialty shops

Chapter 12: Location & Layout14 Copyright 2002 Prentice Hall Publishing Company Three Layout Patterns n Boutique  Divides store into a series of individual shopping areas, each with its own theme; unique shopping environment  Small department stores

Chapter 12: Location & Layout15 Copyright 2002 Prentice Hall Publishing Company Layout Guidelines Know your customers’ buying habits and plan your layout accordingly. Know your customers’ buying habits and plan your layout accordingly. n Display merchandise as attractively as your budget will allow. n Display complementary items together. n Recognize the value of floor space; never waste valuable selling space with nonselling functions.