Upload
destiny-loose
View
217
Download
1
Tags:
Embed Size (px)
Citation preview
10-1 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Site Selection RETAIL
MANAGEMENT:A STRATEGICAPPROACH11th Edition11th Edition
BERMAN EVANS
1
10-2 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Chapter Objectives To thoroughly examine the types of
locations available to a retailer: isolated stores, unplanned business districts, and planned shopping centers
To note the decisions necessary in choosing a general retail location
To describe the concept of one-hundred percent location
2
10-3 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Chapter Objectives (cont.) To discuss several criteria for evaluating
general retail locations and the specific sites within them
To contrast alternative terms of occupancy
3
10-4 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Overview Step 1: investigate alternative
trading areas (Chapter 9) Step 2: determine what type of
location is desirable Step 3: select the general location Step 4: evaluate alternative
specific store sites
Chapter 10 discusses steps 2-4.Chapter 10 discusses steps 2-4.
4
10-5 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
IsolatedStore
PlannedShoppingCenter
UnplannedBusinessDistrict
5
10-6 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Isolated StoresIsolated Stores
AdvantagesAdvantages* No competition* Low rental costs* Flexibility* Good for
convenience stores
* Better visibility* Adaptable
facilities* Easy parking
DisadvantagesDisadvantages* Difficulty
attracting customers
* Travel distance* Lack of variety for
customers* High advertising
expenses* No cost sharing* Restrictive zoning
laws6
10-7 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Examples of Isolated StoresExamples of Isolated StoresLarge-store
formatsWal-Mart Costco
Convenience stores7-Eleven
10-8 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 10-1: Site Selection and Starbucks
8
10-9 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Unplanned Business DistrictsUnplanned Business Districts
Central BusinessDistrict
SecondaryBusinessDistrict
NeighborhoodBusinessDistrict
String
9
10-10 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 10-2: A Revitalized Central Business District
10-11 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 10-3: Unplanned Business Districts and Isolated Locations
10-12 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Planned Shopping CentersPlanned Shopping Centers
AdvantagesAdvantages* Well-rounded
assortments* Strong suburban
population* One-stop, family
shopping* Cost sharing* Transportation
access* Pedestrian traffic
DisadvantagesDisadvantages* Limited flexibility* Higher rent* Restricted
offerings* Competition* Requirements for
association memberships
* Too many malls* Domination by
anchor stores
10-13 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 10-4: Macy’s and Shopping Centers
10-14 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Table 10-1a: Characteristics of Centers
Features Regional Center Total site area 30-100+ Total sq. ft. leased 400,001-2,000,000+
Principal tenant 1+ department stores Number of stores 50-150 or more Minimum # of people in trading area
100,000+
Driving time of trading area Up to 30 minutes Location Outside central city on
highway
10-15 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Table 10-1b: Characteristics of Centers
Features Community Center
Total site area 10-40+
Total sq. ft. leased 100,001-400,000
Principal tenant Supermarket or drug store
Number of stores 5-15
Minimum # of people in trading area
3,000-50,000
Driving time of trading area
Fewer than 15 minutes
Location In a single residential area
10-16 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Table 10-1c: Characteristics of Centers
Features Neighborhood Center
Total site area 3-15+
Total sq. ft. leased 300,000-100,000
Principal tenant Branch department store
Number of stores 15-25 or more
Minimum # of people in trading area
20,000-100,000
Driving time of trading area
Up to 20 minutes
Location Close to a populated residential area
10-17 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 10-5: Festival Walk, Hong Kong
10-18 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Location and Site EvaluationLocation and Site Evaluation
One-Hundred Percent Location
The optimum site
for a particular store
10-19 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 10-7: Location/Site
Evaluation Checklist
10-20 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Pedestrian TrafficPedestrian 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
10-21 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Vehicular TrafficVehicular Traffic
Important for convenience stores outlets in regional shopping
centers car washes suburban areas with limited
pedestrian traffic
10-22 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Parking ConsiderationsParking Considerations
Number and quality of spots Distance of spots from stores Availability of employee parking Price to charge customers for
parking
10-23 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
How Many Parking Spaces?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
10-24 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 10-8: Corner Influence and Hershey’s
10-25 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Terms of Occupancy ConsiderationsTerms of Occupancy Considerations
Ownership versus leasingType of leaseOperations and maintenance costsTaxesZoning restrictionsVoluntary regulations
10-26 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Percentage
Straight
Maintenance-Increase
Recoupment
Graduated Net
10-27 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in
any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United
States of America.