Retail Locations Location is the prime consideration in a customer’s store choice.

Types of Location Shopping Centers - Strip Shopping Centers - Strip Shopping Centers - Shopping Malls - Shopping Malls City or Town Locations - Central Business Districts (CBD) - Central Business Districts (CBD) Freestanding Sites Other Retail Location Opportunities - Mixed-use Developments (MXDs) - Airports - Resorts - Hospitals - Store within a store

SHOPPING CENTRES Shopping Centre is a group of retail & other commercial establishment that is planned, developed, owned & managed as a single property. 2 main configurations Strip Shopping Centers Shopping centers that usually have a parking directly in front of the stores. Shopping malls Shopping centers in which Customers park in outlying Areas and walk to the stores.

Strip Shopping Centers - Traditional Strip Centre :- shopping centre that is designed to provide convenient shopping for the day-to-day needs of consumers in their immediate neighborhood. - Power Centers :- shopping center that is dominated by several large freestanding anchors.

Shopping Malls - Regional :- General Merchandise, fashion mainly, main attractions are its anchors, department & discount stores or fashion specialty stores. - Superregional Centers :- similar to regional centre but larger size.Has more variety & assortment - Lifestyle :- Higher end,fashion oriented. - Fashion /speciality centers - Outlet:- manufacturers outlet stores - Theme/Festival Centers :- unifying theme in individual shops & also to an extend in merchandise. - Merchandise Kiosks :- small selling spaces offering a limited merchandise assortment. Found in shopping malls.

CITY OR TOWN LOCATIONS Central Business Districts :- Central Business Districts :- business area in a city or town. CBDs for retail trade are those with a large number of residents living the area. Inner City Locations :- typically high density urban areas. Main Street Locations :- CBD located in traditional shopping area of small town or suburb within a larger city. Occupancy costs are genrally lower than primary CBD. FREESTANDING SITES Retail location that’s not connected to other retailers, although many are located adjacent to malls

OTHER RETAIL LOCATION OPPORTUNITIES Mixed-Use Developments (MXDs) :- combine several different uses in one complex, including shopping centres, office towers, hotels, residential complexes, civic centers, and convention centers. Popular with retailers because they bring additional shoppers to their stores. - Airports - Resort - Hospitals - Store within a store

Site Selection Region :- refers to the country, part of the country, a particular city or Metropolitan Statistical Area (MSA) :- city with 75,000 (in england) inhabitants, urbanized area. Trade Area :- contiguous geographical area. That accounts for majority of stores sales & customers. Maybe a part of city or may extend beyond the city’s boundaries. Regional AnalysisTrade Area AnalysisSite Analysis

Factors Affecting The Demand for a Region or Trade Area - Economies of scale - Demographic & Lifestyle Characteristics - Business Climate :- employment level, cyclical trends etc. - Competition - Saturated Trade area - Saturated Trade area Ex:- some restaurants such as Burger king seek locations where their major competition-McDonald’s has a strong presence. They believe that it is important to go head-to-head with their strongest competitors so that they can develop methods & systems that will allow them to successfully compete with them. - Understored Trade area - Understored Trade area An area that has too few stores selling a specific good or service to satisfy good or service to satisfy the needs of the population - Overstored Trade area - Overstored Trade area Having so many stores selling a specific good or service that some stores will fail.

- Span of Managerial Control focus on certain geographic regions or trade areas. focus on certain geographic regions or trade areas. - Global Location Issues FACTORS AFFECTING THE ATTRACTIVENESS OF A SITE -Accessibility -Macro Analysis - Road Patterns - Natural Barriers - Artificial Barriers -Micro Analysis - visibility - Amount & quality of parking facilities - Congestion -Location Advantages within a Center - Principle of Cumulative Attraction :- applies to both stores that sell complementary merchandise & those that compete directly with one another.

Estimating Demand for a New Location Retailers estimate the demand for a new location by defining its trade area & then estimating how much people within the trade area will spend. Trade Area :- divided into 2 to 3 zones - Primary Zone :- geographic area from which store derives 60 to 65% of its customers. - Secondary Zone :- geographic area from which store derives 20% of its customers/sales. - Tertiary Zone :- outermost ring :- customers who occasionally shop from the store.

Factors defining Trade Areas - Store Accessibility - Natural & Physical Barriers - Type of Shopping area - Competition - Type of Store (a) Destination store :- is one in which the merchandise, selection, presentation, pricing or other unique features act as a magnet for customers. (b) Parasite Store :- one that does not create its own traffic & whose trade area is determined by the destination or dominant retailer in the retail area.

Sources of Information to define a Trade Area 1. Determine no. of people /potential customers) & where they live Technique :- Technique :- -Customer Spotting -Census -Demographic data & GIS (Geographical Information Systems) -ACORN ( A Classification of Residential Neighborhoods) -MPI (Market Potential Index) -SPI (Spending Potential Index) 2. Sources to assess competition.