1. 10-1 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Site Selection RETAIL MANAGEMENT: A STRATEGIC APPROACH 11th Edition BERMAN EVANS 1

2. 10-2 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Overview  Step 1: investigate alternative trading areas  Step 2: determine what type of location is desirable  Step 3: select the general location  Step 4: evaluate alternative specific store sites 2

3. 9-3 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 9-5: Delineating Trading-Area Segments 3

4. 9-4 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall The Size and Shape of Trading-Areas  Primary trading-area  50-80% of a store’s customers  Secondary trading-area  15-25% of a store’s customers  Fringe trading-area  all remaining customers 4

5. 10-5 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Three Types of Locations Isolated Store Planned Shopping Center Unplanned Business District 5

6. 10-6 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Isolated Stores Advantages * No competition * Low rental costs * Flexibility * Good for convenience stores * Better visibility * Adaptable facilities * Easy parkingDisadvantages * Difficulty attracting customers * Travel distance * Lack of variety for customers * High advertising expenses * No cost sharing * Restrictive zoning laws 6

7. 10-7 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Examples of Isolated Stores Large-store formats Wal-Mart Costco Convenience stores 7-Eleven

8. 10-8 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 10-1: Site Selection and Starbucks 8

9. 10-9 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Unplanned Business Districts Central Business District Secondary Business District Neighborhood Business District String 9

10. 10-10 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 10-2: A Revitalized Central Business District

11. 10-11 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 10-3: Unplanned Business Districts and Isolated Locations

12. 10-12 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Planned Shopping Centers Advantages * Well-rounded assortments * Strong suburban population * One-stop, family shopping * Cost sharing * Transportation access * Pedestrian trafficDisadvantages * Limited flexibility * Higher rent * Restricted offerings * Competition * Requirements for association memberships * Too many malls * Domination by anchor stores

13. 10-13 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 10-4: Macy’s and Shopping Centers

14. 10-14 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Table 10-1a: Characteristics of Centers

15. 10-15 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Table 10-1b: Characteristics of Centers

16. 10-16 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 10-5: Festival Walk, Hong Kong

17. 10-17 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 10-7: Location/Site Evaluation Checklist

18. 10-18 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Pedestrian Traffic  The most crucial measures of a location/site’s value are the number and type of people passing by.  Proper pedestrian traffic count should include:  age and gender (exclude very young children)  count by time of day  pedestrian interviews  spot analysis of shopping trips

19. 10-19 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Vehicular Traffic Important for  convenience stores  outlets in regional shopping centers  car washes  suburban areas with limited pedestrian traffic

20. 10-20 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Parking Considerations  Number and quality of spots  Distance of spots from stores  Availability of employee parking  Price to charge customers for parking

21. 10-21 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall How Many Parking Spaces? Shopping centers = 4-5 spaces per 1000 square feet of gross floor space Supermarkets = 10-15 spaces per 1000 square feet of gross floor space Furniture stores = 3-4 spaces per 1000 square feet of gross floor space

22. 10-22 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 10-8: Corner Influence and Hershey’s