Retail Management Chapter 7: Types of Retail Locations Quiz and Flashcards

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Questions and Answers

What is a key consideration when evaluating the convenience of a retail location?

Customer traffic flow (correct)

Occupancy cost

Proximity to competitors

Property manager restrictions

What type of retailers often occupy freestanding sites?

Retailers with small space requirements

Retailers with large space requirements (correct)

Small boutique owners

Online retailers

What is a disadvantage of freestanding retail locations?

Higher rents

Lack of synergy with other stores (correct)

Less visibility

Limited parking

What is the central business district (CBD) in a city or town?

A traditional downtown business area Signup and view all the answers

Why might a retailer prefer a freestanding location?

To have greater convenience for customers Signup and view all the answers

What is a benefit of freestanding retail locations?

Greater visibility Signup and view all the answers

Why is store location important for a retailer?

Because it is a strategic tool for developing a sustainable competitive advantage Signup and view all the answers

What characterizes unplanned locations?

No centralized management determines store operations Signup and view all the answers

What do planned locations have that unplanned locations do not?

Centralized management that determines store operations Signup and view all the answers

What do retailers need to consider when choosing a location type?

A series of trade-offs between the cost and value of the location Signup and view all the answers

What is a major difference between unplanned and planned locations?

Management style Signup and view all the answers

Why are location decisions considered risky?

Because they are hard to change Signup and view all the answers

What is a key factor in a customer's store choice?

Location Signup and view all the answers

What kind of investment might a retailer need to make in a location?

Substantial investment to buy and develop real estate Signup and view all the answers

What is a characteristic of urban locations in the United States?

Higher unemployment and lower median incomes compared to surrounding areas Signup and view all the answers

What is a disadvantage of urban locations?

High security required Signup and view all the answers

What is a characteristic of Main Streets?

Occupancy costs are lower than CBDs Signup and view all the answers

What is a characteristic of shopping centers?

They are planned, developed, and managed as a single property Signup and view all the answers

What is the role of shopping center management?

Responsible for common facilities, security, outdoor signage, and advertising Signup and view all the answers

What type of shopping center has attached rows of stores with onsite parking?

Strip Centers Signup and view all the answers

What are the anchors in a shopping center?

One or two major retailers Signup and view all the answers

What is a disadvantage of urban locations during evenings and weekends?

Slowness Signup and view all the answers

Which type of shopping center is characterized by an open-air configuration of specialty stores, entertainment, and restaurants?

Lifestyle center Signup and view all the answers

What is the primary purpose of a pop-up store?

To introduce and remind consumers of a brand or store Signup and view all the answers

What is a characteristic of omnicenters?

They lower common area maintenance charges by spreading the costs among more tenants Signup and view all the answers

What type of shopping center is typically found in tourist areas?

Theme/festival center Signup and view all the answers

What is the main characteristic of a power center?

It is dominated by several large anchors, including discount stores Signup and view all the answers

What is a merchandise kiosk?

A small, temporary selling space Signup and view all the answers

What is the purpose of a store within a store?

To lease space to other retailers Signup and view all the answers

What is a characteristic of shopping malls?

They are climate-controlled and have retail stores on one or both sides of an enclosed walkway Signup and view all the answers

Why do retail chains attempt to open multiple stores in an area?

To achieve promotion and distribution economies of scale Signup and view all the answers

What happens when a retailer opens too many stores in an area?

The sales of each store decrease due to cannibalization Signup and view all the answers

What do retailers consider when evaluating a site for a new store?

The characteristic of the site and the trading area Signup and view all the answers

What is a key factor in determining the accessibility of a site?

The amount and quality of parking facilities Signup and view all the answers

What is a trade area in retailing?

A contiguous geographic area that accounts for the majority of a store's sales and customers Signup and view all the answers

What is the primary zone of a trade area?

The area closest to the store location Signup and view all the answers

Why do retailers divide a trade area into zones?

To estimate the demand for a new location Signup and view all the answers

What do retailers estimate when defining a trade area?

How much people in the trade area will spend Signup and view all the answers

Study Notes

Importance of Store Location

Location is a prime consideration in a customer's store choice
Location decisions have strategic importance and can provide a sustainable competitive advantage
Location decisions are risky and difficult to change due to long-term leases and property commitments

Types of Locations

Unplanned locations: freestanding and urban sites, no centralized management
Planned locations: shopping centers, managed by a developer or manager with policies governing store operations

Unplanned Retail Locations

Freestanding sites: individual stores, often with large space requirements
- Advantages: greater visibility, lower rents, ample parking, no direct competition, convenience for customers
- Disadvantages: lack of synergy with other stores
Urban locations: central business district (CBD) and inner city areas
- CBD: hub for public transportation, pedestrian traffic, high security required
- Disadvantages: high crime rates, poor parking, slow evenings and weekends
- Inner city: high-density urban areas with higher unemployment and lower median incomes

Planned Retail Locations

Shopping centers: group of retail and commercial establishments planned, developed, owned, and managed as a single property
Types of shopping centers:
- Neighborhood and community shopping centers: attached rows of stores with onsite parking
- Power centers: dominated by large anchors, including discount stores and warehouse clubs
- Shopping malls: enclosed, climate-controlled, and lighted, with retail stores on one or both sides of an enclosed walkway
- Lifestyle centers: open-air configuration with specialty stores, entertainment, and restaurants
- Outlet centers: consist mostly of manufacturers' outlets
- Theme/festival centers: employ a unifying theme, typically tourist-oriented
- Omnicenters: respond to trends in retailing, including lower common area maintenance charges

Nontraditional Locations

Pop-up stores and other temporary locations: introduce and remind consumers of a brand or store
Store within a store: retailers lease space to other retailers, often department stores
Merchandise kiosks: small, temporary selling spaces in walkways of enclosed malls, airports, or office building lobbies

Evaluating a Site for Locating a Retail Store

Site characteristics: traffic flow, accessibility, parking facilities, location characteristics, restrictions, and costs
Trade area characteristics: definition of trade area, primary, secondary, and tertiary zones, estimating demand and sales potential

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Description

Learn about retail locations and their importance in retail management. Understand the strategic decisions involved in choosing a store location and its impact on customer choice.

Retail Management Chapter 7