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What are the 3 most important things in Retailing?
LOCATION, LOCATION & LOCATION
SOME COMMON QUESTIONS TO RETAILERS • • • • Type of location available Relative advantage of each location Match of some locations to specific retail strategies Locations gaining popularity among retailers .
TYPES FREESTANDING/ ISOLATED PART OF BUSINESS DISTRICT PART OF SHOPPING CENTER .
low pedestrian traffic. ISOLATED/ FREESTANDING • Store located along a major traffic artery. without any competitive retailer around. fast food restaurants on highways etc.1. . • Low rents & ample parking • High advertising costs • Willingness of customer to travel long distances • Nature of product • Eg: Gas stations. • High shopping convenience. & high vehicular traffic.
easy transport. Eg: CP in Delhi • Retailer may not have to spend heavy on attracting customers but faces high rents & cumbersome parking . or centre of trade with no pre-set format • Can be classified as: Central. • CBD: Main centre of trade in the city.2. secondary or a Neighbourhood Business District. PART OF BUSINESS DISTRICT • BD is the place of commerce in the city. peak land rates & intense developments.
• SBD: Evolved over a period of time with the spread of population in the city • A city may have more than 1 SBD • Characterized by a good mix of retailers. stationary shops. . • Characterized by presence of stores like a supermarket. medical shops etc. developed to serve the needs of the Neighbourhood. relatively small stores & adequate transportation • NBD: an unplanned shopping area.
PC. CSC.” . owned & managed as a single property. PART OF SHOPPING CENTER • Shopping Center: “A group of retail & other commercial establishments that is planned.by ICSC • ICSC defined 8 basic types of Shopping centre: NSC. RSC. FC. developed. TC & OC BASIC CONFIGURATIONS : MALL & STRIP CENTER .3. SRC.
walkway .Mall • Enclosed. with a climate-controlled between two facing strips of stores.
• May be configured in a straight line. with on-site parking usually located in front of the stores. . but does not have enclosed walkways linking the stores. or have an "L" or "U" shape. • Open canopies may connect the storefronts.STRIP CENTER • An attached row of stores or service outlets • Managed as a coherent retail entity.
a) NEIGHBOURHOOD SHOPPING CENTRE • Designed to provide convenience shopping for the day-to-day needs of consumers in the immediate neighborhood. although a canopy may connect the storefronts. • Roughly half of these centers are anchored by a supermarket. • Anchors are supported by stores offering pharmaceuticals and health-related products. snacks and personal services. sundries. . while 1/3rd have a drugstore anchor. • Usually configured as a straight-line strip with no enclosed walkway or mall area.
• Among the more common anchors are supermarkets. • Community center tenants sometimes contain offprice retailers selling such items as apparel. toys. • The center is usually configured as a strip. • Of the eight center types. super drugstores. . in a straight line. electronics or sporting goods. and discount department stores.B) COMMUNITY CENTER • Offers a wider range of apparel and other soft goods than the neighborhood center does. home improvement/furnishings. or “L” or “U” shape. community centers encompass the widest range of formats.
• A typical regional center is usually enclosed with an inward orientation of the stores connected by a common walkway and parking surrounds the outside perimeter. or discount department stores or fashion specialty stores. . mass merchant. • Its main attractions are its anchors: traditional.C) REGIONAL CENTER • This center type provides general merchandise (a large percentage of which is apparel) and services in full depth and variety.
• The typical configuration is as an enclosed mall. and draws from a larger population base. but because of its larger size has more anchors. frequently with multi levels.D) SUPER REGIONAL CENTER • Similar to a regional center. . a deeper selection of merchandise.
. • Need not be anchored. • These centers usually are found in trade areas having high income levels. emphasizing a rich decor and high quality landscaping. although sometimes restaurants or entertainment can provide the draw of anchors. boutiques and craft shops carrying selected fashion or unique merchandise of high quality and price.E) FASHION/SPECIALTY CENTER • A center composed mainly of upscale apparel shops. • The physical design is very sophisticated.
. including discount department stores.e." i. . warehouse clubs. stores that offer tremendous selection in a particular merchandise category at low prices. or "category killers.F) POWER CENTER • Dominated by several large anchors. off-price stores. • Typically consists of several freestanding (unconnected) anchors and only a minimum amount of small specialty tenants.
. and can be part of mixed use projects. • The biggest appeal is to tourists.G) THEME/FESTIVAL CENTER • Typically employ a unifying theme that is carried out by the individual shops in their architectural design and. they can be anchored by restaurants and entertainment facilities. to an extent. tend to be adapted from older. buildings. sometimes historic. in their merchandise. • Generally located in urban areas.
• A strip configuration is most common. although some are enclosed malls. .H) OUTLET CENTER • Usually located in rural or occasionally in tourist locations • Consist mostly of manufacturers' outlet stores selling their own brands at a discount. • Typically not anchored. and others can be arranged in a "village" cluster.
• Airports • Resorts • Hospitals • Store within a store . residential complexes. hotels. office towers. civic centre & convention centre.OTHER TYPES OF SC • Mixed Use Developments (MXDs): combine several different uses in one complex including shopping centre.
Determine the market potential: • Demographics • Characteristics of the area • Competition & compatibility • Trade Area Analysis (TA is the geographic area that generates majority of the customers for the store) • Laws & Regulation .STEPS INVOLVED IN CHOOSING A RETAIL LOCATION After identifying the region: 1. Identify the market: 2.
. • Types: Primary. • The potential of the trade area helps determine the no. of stores that can be located. Secondary & tertiary • PTA: covers 50-80% of the store customers & is closest to the store • STA: contains the additional 15-25% of the store customers. • Can vary depending on factors like: nature of offerings or the different market segments. • TTA: covers the balance customers.Trade Area • Often extends beyond the municipal boundaries of a town or city.
Identify Alternate sites & select the site (Traffic.3. Accessibility. buy/lease. product mix offered) Refer: Preliminary assessment check list for a store location & Site visit report . amenities.
Convenience shopping: • Indifference towards brands or retailer’s image.SHOPPING BEHAVIOUR OF CONSUMERS IN RETAILER’S TARGET MARKET Three types of shopping situations in which the consumers involve are: 1. • Minimize efforts to get products • Low evaluation • Targeted by Convenience stores • Located in NBD .
.2. • Generally applicable to home appliances. offering a huge range to compare. • Malls. Specialty stores & Category specialist comes under this. gadgets. apparel etc. Comparison Shopping • Consumers are not much brand or store loyal but spend considerable efforts on evaluation.
• Eg: buying specific branded perfumes. • Ready to travel far-off locations . Dress etc. Specialty Shopping • Consumers are well aware of what they need & do not accept any substitute. • Brand/store loyal • Ready to pay a premium or spend extra effort.3.
Zoning & Building codes: • Some parts of the city are zoned as: Residential. . Environmental Issues: • Asbestos containing materials or lead pipes used in construction. signs. Laws regarding how land is used 2.LEGAL CONSIDERATIONS 1. • Hazardous materials stored in the ground 3. light industrial & retail use. size & type of parking lot. • BCs are similar legal restrictions specifying the type of building.
Licensing Sale of alcoholic beverages . Eg: SALE signs must also be approved by shopping center management prior implementation. 5. Signs • Restrictions on the use of signs.4.
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