Transcript Shopping malls

Retail Locations
Location is the prime consideration in
a customer’s store choice .
Types of Location
Shopping Centers
- Strip Shopping Centers
- Shopping Malls
City or Town Locations
- Central Business Districts (CBD)
Freestanding Sites
Other Retail Location Opportunities
- Mixed-use Developments (MXDs)
- Airports
- Resorts
- Hospitals
- Store within a store
SHOPPING CENTRES
Shopping Centre is a group of retail & other
commercial establishment that is planned ,
developed, owned & managed as a single property .
2 main configurations
Strip Shopping Centers
Shopping centers that usually have a
parking directly in front of the stores.
Shopping malls
Shopping centers in which
Customers park in outlying
Areas and walk to the stores.
Strip Shopping Centers
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Traditional Strip Centre :- shopping centre that
is designed to provide convenient shopping for
the day-to-day needs of consumers in their
immediate neighborhood.
Power Centers :- shopping center that is
dominated by several large freestanding
anchors.
Shopping Malls
Regional :- General Merchandise , fashion mainly
, main attractions are its anchors , department &
discount stores or fashion specialty stores .
- Superregional Centers :- similar to regional centre
but larger size.Has more variety & assortment
- Lifestyle :- Higher end,fashion oriented .
- Fashion /speciality centers
- Outlet:- manufacturers outlet stores
- Theme/Festival Centers :- unifying theme in
individual shops & also to an extend in
merchandise .
- Merchandise Kiosks :- small selling spaces
offering a limited merchandise assortment . Found
in shopping malls .
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CITY OR TOWN LOCATIONS
Central Business Districts :- business area in a city or
town . CBDs for retail trade are those with a large
number of residents living the area .
Inner City Locations :- typically high density urban
areas .
Main Street Locations :- CBD located in traditional
shopping area of small town or suburb within a
larger city . Occupancy costs are genrally lower than
primary CBD .
FREESTANDING SITES
Retail location that’s not connected to other retailers ,
although many are located adjacent to malls
OTHER RETAIL LOCATION
OPPORTUNITIES
Mixed-Use Developments (MXDs) :- combine several
different uses in one complex , including shopping
centres, office towers, hotels, residential complexes,
civic centers , and convention centers . Popular with
retailers because they bring additional shoppers to
their stores.
- Airports
- Resort
- Hospitals
- Store within a store
Site Selection
Region :- refers to the country , part of the
country , a particular city or
Metropolitan Statistical Area (MSA) :- city with
75,000 (in england) inhabitants , urbanized
area .
Trade Area :- contiguous geographical area. That
accounts for majority of stores sales &
customers . Maybe a part of city or may
extend beyond the city’s boundaries .
Regional Analysis
Trade Area Analysis
Site Analysis
Factors Affecting The Demand for a Region or
Trade Area
Economies of scale
- Demographic & Lifestyle Characteristics
- Business Climate :- employment level , cyclical trends etc.
- Competition
- Saturated Trade area
Ex:- some restaurants such as Burger king seek locations where their
major competition-McDonald’s has a strong presence . They believe
that it is important to go head-to-head with their strongest competitors
so that they can develop methods & systems that will allow them to
successfully compete with them .
- Understored Trade area
An area that has too few stores selling a specific good or service to
satisfy good or service to satisfy the needs of the population
- Overstored Trade area
Having so many stores selling a specific good or service that some stores
will fail .
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Span of Managerial Control
focus on certain geographic regions or trade areas.
- Global Location Issues
FACTORS AFFECTING THE ATTRACTIVENESS OF A SITE
-Accessibility
-Macro Analysis
- Road Patterns
- Natural Barriers
- Artificial Barriers
-Micro Analysis
- visibility
- Amount & quality of parking facilities
- Congestion
-Location Advantages within a Center
- Principle of Cumulative Attraction :- applies to both
stores that sell complementary merchandise & those
that compete directly with one another .
Estimating Demand for a New Location
Retailers estimate the demand for a new location by
defining its trade area & then estimating how much
people within the trade area will spend.
Trade Area :- divided into 2 to 3 zones
- Primary Zone :- geographic area from which store
derives 60 to 65% of its customers .
- Secondary Zone :- geographic area from which store
derives 20% of its customers/sales .
- Tertiary Zone :- outermost ring :- customers who
occasionally shop from the store .
Factors defining Trade Areas
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(a)
(b)
Store Accessibility
Natural & Physical Barriers
Type of Shopping area
Competition
Type of Store
Destination store :- is one in which the
merchandise , selection , presentation , pricing
or other unique features act as a magnet for
customers .
Parasite Store :- one that does not create its own
traffic & whose trade area is determined by the
destination or dominant retailer in the retail area.
Sources of Information to define a Trade Area
Determine no. of people /potential customers) &
where they live
Technique :-Customer Spotting
-Census
-Demographic data & GIS (Geographical Information
Systems)
-ACORN ( A Classification of Residential Neighborhoods)
-MPI (Market Potential Index)
-SPI (Spending Potential Index)
1.
2. Sources to assess competition .