Retail Store Location Planning
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Questions and Answers

What is an advantage of a freestanding store location?

No competition around

What is another term for a business district?

Unplanned business centers

What is a characteristic of a Central Business District (CBD)?

High land rates and intense development

What is the definition of a shopping center?

<p>A group of retail and other commercial establishments that is planned, developed, owned, and managed as a single property</p> Signup and view all the answers

What is a characteristic of a mall?

<p>Enclosed and climate controlled</p> Signup and view all the answers

Why will customers travel to a store's location?

<p>Because the store's location will become a destination</p> Signup and view all the answers

What are the three types of shopping situations that consumers in retail's target market experience?

<p>Convenience Shopping, Comparison Shopping, and Specialty Shopping</p> Signup and view all the answers

What is the primary concern of consumers in convenience shopping situations?

<p>Minimizing their efforts to get the products or services they want</p> Signup and view all the answers

What motivates consumers in comparison shopping situations?

<p>Seeking information and making a well-planned purchase decision</p> Signup and view all the answers

What characterizes consumers in specialty shopping situations?

<p>They know what they want and will not accept a substitute</p> Signup and view all the answers

What two factors contribute to the uniqueness of a retail offering?

<p>Location and Retail Strategy</p> Signup and view all the answers

What are two environmental issues that retailers need to consider?

<p>Zoning and Building Codes, and Licensing Requirements</p> Signup and view all the answers

Why is a good location important for a retailer's success?

<p>A good location can help a retailer succeed even if its strategic mix is mediocre, and a bad location can cause a retailer to fail even if its strategic mix is excellent.</p> Signup and view all the answers

What are three potential problems that arise when changing a store's location?

<p>Loss of loyal customers and employees, the new location may not have the same characteristics as the old location, and store fixtures cannot be moved to the new location.</p> Signup and view all the answers

What is one type of retail location where there are no other outlets in the vicinity of the store?

<p>Freestanding or Isolated store.</p> Signup and view all the answers

What is one factor that affects a store's location decision?

<p>Size and characteristics of the market (population).</p> Signup and view all the answers

Why is location the least flexible element of a retailer's strategic mix?

<p>Due to its fixed nature, the amount of investment, and the length of lease agreements.</p> Signup and view all the answers

What is another type of retail location besides freestanding or isolated stores?

<p>Part of Business District/Centers (unplanned Business Districts).</p> Signup and view all the answers

Study Notes

Advantages of Freestanding Stores

  • No competition around the store
  • Low rent
  • Better visibility from the road
  • Easy parking
  • Lower property cost

Business Districts

  • A place of commerce in a city that developed historically as the center of trade and commerce
  • Can be referred to as unplanned business centers
  • Central Business District (CBD) is the main center of commerce and trade in the city
  • Characterized by high land rates and intense development

Shopping Centers (Planned Shopping Centers)

  • A group of retail and other commercial establishments that is planned, developed, owned, and managed as a single property
  • Basic configuration: Mall or Strip center
  • Mall: typically enclosed and climate-controlled with a walkway in front of the stores
  • Strip center: a row of stores with parking provided in the front of the stores

Other Location Opportunities

  • Airports
  • Temporary Locations
  • Resorts
  • Store within a store
  • Merchandise Kiosks

Importance of Retail Location Decision

  • One of the most important factors customers consider when choosing a store
  • A bad location can cause a retailer to fail, even with a good strategic mix
  • A good location can help a retailer succeed, even with a mediocre strategic mix
  • Store location is the least flexible element of a retailer's strategic mix

Factors Affecting Location

  • Size and characteristics of market (population)
  • Level of competition
  • Access to transportation
  • Parking space availability
  • Attributes of nearby stores
  • Property costs
  • Length of agreement
  • Population trends
  • Legal restrictions

Basic Types of Locations

  • Freestanding/Isolated store
  • Part of Business District/Centers (unplanned Business Districts)

Types of Shopping Situations

  • Convenience Shopping: primary concern is minimizing effort to get products or services
  • Comparison Shopping: purchase decision is more important, seeking information and willing to spend effort planning and making a purchase decision
  • Specialty Shopping: know what they want, will not accept a substitute, and will pay a premium to get exactly what they want

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Description

Learn about the importance of retail location decisions and how it affects the success of a store. Understand the factors to consider when choosing a store location and how it can impact customer choices.

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