There
are a few steps that retailers have to follow in order to select the best site
for the retail store.
Step
1: Investigate alternative trading areas.
Step
2: Determine what type of location is desirable
A
few types of locations available to a retailer such as isolated stores, unplanned
business districts, and planned shopping centers.
Isolated
Stores
|
|
Advantages
|
|
•
No direct competition
•
Low rental costs
•
Flexibility
•
Good for convenience stores
•
High visibility
•
Adaptable facilities
•
Easy parking
•
Excellent for store that generates own traffic
|
•
Difficulty attracting customers
•
Travel distance
•
Lack of cumulative attraction for customers
•
High advertising expenses
•
No cost sharing for promotions
•
Possibly restrictive zoning laws
|
For examples
of isolated stores, large-store formats such as Wal-Mart and convenience store such as 7-Eleven.
Unplanned
Business Districts
- Central Business
- Secondary Business District
- Neighborhood Business District
- String
Example:
1.
Times
Square
2.
Unplanned
Business Districts and Isolated Locations
Planned
Shopping Centers
|
|
Advantages
|
Disadvantages
|
·
Well-rounded assortments
·
Strong suburban population
·
One-stop, family shopping
·
Cost sharing of promotions
·
Transportation access
·
Pedestrian traffic
|
·
Limited flexibility
·
Higher rent
·
Restricted product offerings in lease
·
Competition
·
Requirements for association memberships
·
Domination by anchor stores
·
Impact of store closings on affinities
|
Macy’s and Shopping Centers
•
Step 3: Select the general location. This can be select from these two location.
One-hundred
percent location
|
The
optimum site for a particular store
|
•
Step 4: Evaluate alternative specific store sites
Figure 10-7: Location/Site Evaluation
Checklist
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