Retail Location

Importance of Retail Location

Retail Location is the most important decision made by a

retailer.

It is the prime consideration of a customer too when it

comes to outlet selection.

Its importance is such that it can provide you an

advantage over you competitors. An advantage that can
not be duplicated.

Many kinds of options are available to a retailer and each

has strengths and weaknesses attached to it.

Shopping Centers

A shopping center is a group of retail and other

commercial establishments that is planned,
developed and owned as a single property.

There are two types of a shopping center

1)

Strip Centers

2)

Malls.

Shopping Centers

Strip center: These are shopping centers with car

parking in front of them, may be canopies at the front
and no enclosed walk ways that link the store.

Malls: These are shopping centers where customers

park outlying areas and walk to stores. Typical malls
would be enclosed, climate controlled with walk
ways.

Strip Centers

Advantages.
One of the prime advantage of a strip shopping center is
that they offer convenient locations and easy parking.
They are available to retailers on low rents.
Disadvantage.
The primary disadvantage is that there is no protection
from weather.
They offer less assortment and entertainment options
when compared to malls.
Strip centers do not attract as many customers as malls do.

Strip Centers

There are two types of Strip Shopping Centers.

1)

Traditional Strip Centers

Power Centers

2)

Traditional Strip Center: It is a shopping center that is

designed for the shopping of day to day needs in the
neighborhood of consumers. Smaller strip centers are
anchored by supermarket or a drug store. Larger strip
stores are anchored by discount or off-price stores.

These strip centers can offer lower prices partly because

of their lower rents.

Strip Centers

Power Centers: It is a shopping center dominated by

several large anchors including discount stores and
warehouses. Many power centers are located near
shopping malls.

Shopping Malls

Advantages

1)

There are many kind of stores with variety &

assortment
Shopping with entertainment
Teenagers hang around and meet friends
Senior citizens get an exercise while going around.
Inexpensive entertainment for families with young
children
Tenant mix can be planned by owners
One stop shopping from different retailing formats
Controlled environment

2)
3)
4)
5)

6)
7)
8)

Shopping Malls
1)

Disadvantages
Mall rents are higher compared to strip center.

2)

Limited space available for display and storage.

3)

Window displays and working hours are dictated.

4)

Competition within the mall is high for same kind of

retailers.

Types of Shopping Malls

Regional Centers: It is a shopping mall that

provides general merchandise (mostly apparel) and
services in full depth and variety.

Its main attractions are its anchors, department stores

and discount stores.

A typical regional center has stores connected by a

common walkway with parking surrounding outside
perimeter.

Types of Shopping Malls

Lifestyle centers:
It is an outdoor streetscape layout with sit down
restaurants and with no self service discount stores.
These centers offer the shoppers an optimum tenant
mix.
Super Regional Centers: It is a shopping center like
a regional center but large in size. It has more
anchors and deeper selection of merchandise.

Types of Shopping Malls

Fashion Specialty Center: A shopping center that is

composed of apparel shops, gift shops, boutiques. Thus
all the merchandise that come under the banner of high
quality and price.

These are similar to lifestyle centers but the difference is

that they are enclosed and are larger than lifestyle stores.

The physical design of these stores are sophisticated,

focusing on rich dcor and high quality landscaping.

These stores are located in posh areas where people with

high income levels live and shop.

Types of Shopping Malls

Outlet Centers: These are shopping centers that consist

mostly of manufacturers outlet stores selling their own
brands, sometimes supposedly on discount.

Outlet center tenants view this opportunity to get rid of

their old stocks and test new merchandise ideas.

Outlet centers are located mostly on outskirts of the city

and closer to the factories where the merchandise is being
manufactured.

Types of Shopping Malls

Theme / Festival Centers: These are shopping centers

that typically employ a theme of some festival or season
and sell items accordingly.

The outlook of the shops are the same and so is the stuff
being sold there.

Merchandise Kiosks: Its though not a shopping mall but

is placed in a mall. They are placed in a proper location
where people either entering or leaving notice them. They
are selling either food or small sized merchandise at lower
prices.

City or Town Locations

Central Business Districts: It is the traditional

downtown business area. It draws people from all corners
of the city for business or shopping.
It also is the hub of public transportation.

Inner City Locations: The inner city is typically a high

density urban area consisting of apartments, buildings and
all kinds of ethnic groups.

Main Street Location: It is the traditional main market of

a smaller town. It has all the characteristics of a Central
Business District.

Retail Location Opportunities

Mixed Use Development: MUD combines several

different uses in one complex. It has, offices, shopping
centers, residential complex and restaurants.
Airports: Air port is a highly visited area where there are
location for a retail outlet.
Resorts: Resorts are a popular place where a retail outlet
does a good business.
Hospitals: There could be restaurants, gift stores and
flowers shops at hospitals and could do good business.
Store within a store: Departmental stores sub let their
premises to small retailers and that adds color to their
shop.

A few points to remember

1)

Decisions about a location of a store is critical to

retailers success. A clear and a logical strategy should
specify location goals.

2)

A location decision is important because of high cost and

can be of advantage that competitor cannot duplicate.

3)

A mistake on location has consequences equal to none in

retailing.

4)

Each site has its own advantages and disadvantages.

5)

Retailer must make sure that the location should be such

that target market should patronize it.