Chapter 2 - Retail Site Location (3).pptx

Retail Location. A space you lease for the selling of goods to consumers. When it comes to business, retailers have one overall goal: to sell merchandise. That's why they focus on sales floor space, adequate parking for customers, and an overall image that draws in customers. Question; where? desig...

Retail Location. A space you lease for the selling of goods to consumers. When it comes to business, retailers have one overall goal: to sell merchandise. That's why they focus on sales floor space, adequate parking for customers, and an overall image that draws in customers. Question; where? design? Size? Accessibility? RETAIL SITE LOCATION Md Zaki bin Muhamad Hasan Types of Retail Locations 1. Frequented Spots; A mall space can potentially provide you with quite a bit of foot traffic as people come to malls specifically to walk around and shop. 2. Commercial Building. 3. Office Space. 4. Small Office/Home Office. RETAIL SITE LOCATION Md Zaki bin Muhamad Hasan Micro Factors Affecting Retail Location Decisions (Trade Area Analysis) Demographic Factors. Economic Factors. Subculture. Demand. Market Potential. Sales Potential. Index of Retail Saturation. Infrastructure. RETAIL SITE LOCATION Md Zaki bin Muhamad Hasan Evaluating site location Choosing a site for a new retail location is one of the most important decisions a business owner will make. In this lesson, we'll examine five factors that impact the selection of a specific store area. Local Demographics Median household income. Average age. Family size. Education level. RETAIL SITE LOCATION Md Zaki bin Muhamad Hasan The major issues to be considered in evaluating location; Connectivity and ease of traffic flow: These are the two important issues that a retailer must consider while selecting a site Parking facility: ADVERTISEMENTS Cost effectiveness Presence of competitors RETAIL SITE LOCATION Md Zaki bin Muhamad Hasan Site characteristics. The distinguishing physical characteristics of a site, including; area, shape, soil and ground conditions, typography, and access to the site. RETAIL SITE LOCATION Md Zaki bin Muhamad Hasan Rent. Commercial leases are usually negotiated on a per- square-meter basis. The annual cost of the lease is usually determined by multiplying the square meter of the premises by the asking price per square meter (psm). RETAIL SITE LOCATION Md Zaki bin Muhamad Hasan Prikker; How to negotiate an effective commercial lease—one that protects your needs and works to your business's best advantage. Evaluate your business needs. Always involve a lawyer. Understand your costs. Understand your lease options. Check market rents. Research the property. Seek tenant inducements. RETAIL SITE LOCATION Md Zaki bin Muhamad Hasan