1. Retail Location

2. The Retail Property Developer’s Simple Truths!

3. Value Creation! The Single Purpose of Retail Property Development =

4. To Start the Value Creation Process you need 3 things: 1A Good Location 2 A Good Location 3A Good Location

5. 1.Importance of store location 2.Types of locations 3.Steps involved in choosing a location 4. How to evaluate retail location?

6. 1.Importance of store location Location decision cannot be changed easily once store is open

7. Remember that: A Customer sees more in an hour Than Management sees in one year!

8. Retailing: Location 2 Type of location Freestanding /isolated store Part of business district Part of shopping center

9. Free Standing/Isolated Stores Free Standing/Isolated Stores Normally located along major traffic artery For eg:- Gas stations, Fast food & hotels on highways. Large-store formats Wal-Mart Convenience stores 7-Eleven Retailing: Type of Location

10. Isolated Stores Advantages * No competition * Low rental costs * Good for convenience stores * Easy parking Disadvantages * Difficulty attracting customers * Travel distance * High advertising expenses Retailing: Type of Location

11. 2 Part of business district Place of commercial activity in the city Central business district CBD: High rent /cost, less parking area Good accessibility,no need to draw customers For e.g. Mumbai : Nariman point / Delhi: Connaught place, Pune “ Lakshmi Road”

12. Secondary business district: Secondary business district: It has evolved over a period of time with the spread of population. It has evolved over a period of time with the spread of population. God mix of retailers God mix of retailers Stores are smaller than CBD with adequate transportation Stores are smaller than CBD with adequate transportation : Parihar Chowk in Aundh : Parihar Chowk in Aundh

13. Neighborhood business district : Neighborhood business district : Unplanned shopping area to serve the needs of the neighbourhood Unplanned shopping area to serve the needs of the neighbourhood For e.g. For e.g. Super markets/ small shops Super markets/ small shops Stationery stores Stationery stores Medical shops Medical shops

14. 3- Part of Shopping Center A group of retail and other commercial establishments that is planned, developed, owned and managed by single property Shopping centers

15. Steps involved in choosing a retail location

16. Retailing: Choosing retail location First decide region …City, State, International Market. Steps to be followed after identification of region Identify market Evaluate demand/ supply..market potential Identify most attractive site Select best site

17. Retailing: Choosing retail location Step 1: Identify market in which to locate the store Market attractive ness Should understand the market well. For eg:- India is a country with its own needs and peculiarities and needs. Markets of Europe are different from that of America and far East.

18. Retailing: Choosing retail location Step 2: Determining the market potential Elements to be considered A) Demographic features : Only knowing the size of population is not enough. Rural and urban breakup is to considered. Level of literacy, education in population

19. b) Characteristic of house hold area b) Characteristic of house hold area Household income and distribution of income in area, age, employment level Household income and distribution of income in area, age, employment level For eg: For eg: High fashion apparel retail store may not succeed in low income households. High fashion apparel retail store may not succeed in low income households.

20. c) Competition and compatibility: c) Competition and compatibility: For eg:- Gift shop may be situated near a department store, restaurant, theatre Gift shop may be situated near a department store, restaurant, theatre Bad idea- high fashion boutique next to bakery or hardware store. Bad idea- high fashion boutique next to bakery or hardware store. area / business income analysis i.e. strength and weakness of the competitors area / business income analysis i.e. strength and weakness of the competitors

21. Retailing: Choosing retail location d) Laws and regulations: Number of working hours the store can operate min wages and holidays to be given to the persons working.

22. Parasite : Depends on other stores Parasite : Depends on other stores for e.g. Pan walas near restaurants, snack bar in a shopping center. for e.g. Pan walas near restaurants, snack bar in a shopping center.

23. Destinations versus Parasites Destination stores have a better assortment, better promotion, and/or better image Destination stores have a better assortment, better promotion, and/or better image It generates a trading area much larger than that of its competitors It generates a trading area much larger than that of its competitors Dunkin’ Donuts: “It’s worth the trip!” Dunkin’ Donuts: “It’s worth the trip!” Parasite stores do not create their own traffic and have no real trading area of their own These stores depend on people who are drawn to area for other reasons

24. Retailing: Consumer Behavior Step 3 and 4 : Identify alternate sites and select the site A retailer strives to find the 100% location. Factors which affect his decision are:- Traffic: Vehicular/pedestrian Traffic for high fashion apparel is different from that of hypermarket.

25. Accessibility of the market : Public transport / road /train connection For e. g : Colaba or Linking Road in Mumbai are more accessible than Kamala Nagar & Powaii Colaba or Linking Road in Mumbai are more accessible than Kamala Nagar & Powaii Total number of stores and type of stores in the area. Total number of stores and type of stores in the area. More the stores more the people visiting, type of store is important. More the stores more the people visiting, type of store is important. Medical shop on Lakshmi road a misfit Medical shop on Lakshmi road a misfit

26. Amenities available: parking Amenities available: parking Facilities like free & ample parking is important. Facilities like free & ample parking is important. Buy /lease decision: long, medium, short Buy /lease decision: long, medium, short Paying high rent is not feasible

27. Product mix offered : Product mix offered : super market vs high fashion garments super market vs high fashion garments Grocery in commercial area may be a misfit. Grocery in commercial area may be a misfit. It should be located in some residential areas. It should be located in some residential areas.

28. What Is One Of the Most Important Things in Retailing? What Is One Of the Most Important Things in Retailing?

29. Location! Location! Location!