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5 th Edition5 th Edition

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McGraw-Hill/IrwinLevy/Weitz: Retailing Management, 5/e Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Site LocationSite Location

Chapter Chapter 8 8

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R etailing Strategy

Retail LocationsChapter 7

Site LocationsChapter 8

Human ResourceManagement

Chapter 9

Information andDistribution

SystemsChapter 10

Customer RelationshipManagement

Chapter 11

Retail Market andFinancial Strategy

Chapter 5, 6

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Location Chapters

Chapter 7

General Description of the Location Types

Advantages and Disadvantages of Different Location Appendix Terms and Condition Involved in Leasing

Sites

Chapter 8

Considerations in Selecting Area for Locating Store

Issues in Evaluating Specific Sites

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Three Levels of Analysis

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Trade Area Issues

Which Trade Areas Are Most Attractive for Locating R etail Outlets?

How Many Outlets to Locate in a Trade Area? More Stores Increases Economies of Scale and

R educes Costs

More Stores alsoR

esults in More Cannibalizationand Less Sales per Store

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F actors Affecting Demandfor a R egion or Trade Area

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F actors Affecting theAttractiveness of a Site

How Attractive Is the Site to the R etailersTarget Market? Match Between Trade Area Demographics and

R etailers Target Market Likelihood of Customers Coming to Location

Convenience

Other Attractive R etailers At LocationP rinciple of cumulative attraction - a cluster of similar

and complementary retailing activities will have greater drawing power.

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Convenience of Going to SiteAccessibility

R oad pattern and condition

Natural and artificial barriers Visibility Traffic flow Parking Congestion Ingress/egress

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In High Traffic AreasNear Anchor Center of Shopping Area

Near Stores Selling ComplementaryMerchandise

Clustering Specialty Stores Appealing toTeenagers

Better locations cost more

Location Within a Center

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Map of Dallas North Park Center

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Estimating Demand for a New Location

Definition of the Trade Area

Primary, Secondary, Tertiary Zones

Approaches for Estimating Demand

Analog Approach

R egression Approach

Huff Gravity Model

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Trade Area

P rimary zone - 60 to 65 percent of its customers

Secondary zone - 20 percent of a stores sales

Tertiary zone - customers who occasionally shopat the store or shopping center

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F actors Defining Trade Areas

AccessibilityNatural & Physical BarriersType of Shopping AreaType of StoreCompetitionParasite Stores

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Oblong Trade Area Caused byMajor Highways and Natural Boundaries

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Sources of Information

Customer Spotting

Census Data

Geodemographic InformationSystems

ACO R N

Information on Competition

Yellow Pages

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Customer Spotting

P urpose : to spot, or locate, the residences of customers for a store or shopping center.

How to obtain data : credit card or checks customer loyalty programs manually as part of the checkout process automobile license plates