Retail Site AssessmentThe Key for the Right Location

About this presentation

• Provide an overview of the site assessment process for a retail store or shopping center

• At its conclusion you will have a basic understanding of the relationships between site, population, traffic flow and trade areas

Basic Types of Retail Stores

• Convenience Stores

• Drug Stores

• Super Markets

• Discount Stores

• Department Stores

Convenience Shoppers

• Drug Store

• Super Markets

Comparison Shoppers

• Fashion

• Image

• Lifestyle

Factors that impact success

• Convenience Stores• Drug Stores• Super Markets• Discount Stores

• Department Stores1 2 3 4 5

Miles from Store

Retail Operations & Travel Time

Trade Areas & Sales Generation

70-80% of a stores sales comes from the trade area

Customer Considerations

• THINK LIKE A CONSUMER

• Frequency of Visits

• Size & Expense of Purchases

• Uniqueness of Retailers

• PERCEPTIONS OF CUSTOMERS

Relationships

• The more frequent and smaller the purchases, the smaller the trade area

• The less frequent and larger the purchases, the larger the trade area

Demographics & Psychographics

• Changes in demographics, educational levels, culture, and household income also define market areas

• They sometimes act as “barriers”

Traffic Flow and Traffic Counts

• The direction of traffic• Frequency of trips• 24-hour traffic count

In relationship to the site:

• Is traffic moving toward the site, away from it or through it?

• How many trips a day pass the site?

• When does the traffic flow?

• Where is the traffic going?

Drive Times & Perceived Drive Times

2-miles- 10-minutes 2-miles- 10-minutesDirection to work

Perceived drive time=1-mile & 3 minutes

Same stores, offering the same products

Traffic Flow & Count

N

10,000 20,000 30,00015,000

Downtown

20,000 30,00015,000

River Freeway

Freeway

10,000

Site

Competing Trade Areas

• Sister stores are the largest competition

• Size of sister store • Presence and amount of other retail offerings

Stand AloneDifficult Site

Retail OperationDowntown

What other shops are there?Are there anchor shops

present

Retail CenterNumber & size of retail

outlets

Sister Stores & Competition

The size of the sister store and its adjoining

retail offerings will dictate the size and

success of the market area

Final Consideration

Is the. . .– Population, its characteristics– Traffic Count, flow and direction strong

enough to attract viable retail operations

?