1. 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

2. 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?

3. 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?

4. Location Analysis
Regional
Analysis
Area
Analysis
Site Analysis

5. 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

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

7. Retail Growth Strategies
Sales
Time

8. 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

9. 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.

10. 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

11. 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

12. 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

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

14. Trade Area for Provo Towne Centre?
Source of Map:

15. 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

16. 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)

17. 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?

18. 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

19. 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

20. 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?

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

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

23. 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
Statistical Abstract
Dept of Census