RETAIL MANAGMENT

STORE LOCATION ANALYSIS

SUBMITTED TO.
Sir, BASIT AFZAL
SUBMITTED BY.
KASHIF NIAZ

2141192

ABDUR-REHMAN

2141204

WAQAS KHAN LATIF MAYO

2141208

KHURAM SHEZAD

2141182

MBA (1.5) Evening

SUBMITTED DATE
15-08-2014

National College of Business

Administration & Economics
LAHORE
RETAIL LOCATION STUDY

An INTRODUCTION
Retail and service centers are often the final stocking points in a physical distribution network.
They include facilities like departmental stores, supermarkets, branch banks, medical centers etc.
Location analysis for these points is highly sensitive to revenue and accessibility factors rather
than cost factors.
Few Factors that influence Location Selection in Retail outlets are:

Competitors

Population Make up

Customer Traffic Patterns

Nearness to Complimentary Outlets

Parking Availability

Community Attitude

The Location of the Retail Store plays a very important Role in its Success. It is an integral and
crucial part of the Retail Strategy as the location of the Store conveys a lot about its image. It
also influences the merchandising mix and layout of the store.
As once Set-up, a retailer can change its merchandise mix, adjust prices, improve
communication/ services but it's very difficult to change the location. So a lot of Planning,
Resources, and Research go in before Deciding upon some Location, Be it about penetrating into
a new city, new customer segment or a new location within the city but a lot of thought goes into
every single thing.
Where you choose to locate your retail business will have a major impact on everything your
shop does. The difference between selecting the wrong location and the right site could be the
difference between business failure and success.
Before choosing a retail store location, defining the business, both for now and in the future is
important. And thinking about the issues like:

Who are your target customers?

How do you want your store?

Determining the business area, store location and the store size.

Without the answers to these basic questions, it will be hard to find the perfect location for
generating the maximum amount of profit for the retail store.

TAKING SOME FACTORS IN DETAIL

TYPE OF GOODS
What kind of products the business is selling, as some goods will require certain types of
locations. Would your store be considered a convenience store, a specialty shop or a shopping
store?
Convenience goods require easy access, allowing the customer to quickly make a purchase. A
mall would not be a good location for convenience goods. This product type is lower priced and
purchased by a wide range of customers.
Specialty goods are more unique than most products and customers generally won't mind
traveling out of the way to purchase this type of product. This type of store may also do well near
other shopping stores.

POPULATION AND THE CUSTOMER

If the retailer is choosing a city or state to locate the retail store, a thorough research of the area
before making a final decision is to be carried out. Reading local papers and speaking to other
small businesses in the area helps. Obtaining location demographics from the local library,
chamber of commerce or the Census Bureau Aso gives a lot of idea. Any of these sources have
information on the area's population, income and age. Knowing who are the customers, and
assuring a location where your customers live, work and shop.

ACCESSIBILITY, VISIBILITY AND TRAFFIC

Don't confuse a lot of traffic for a lot of customers. Retailers want to be located where there are
many shoppers but only if that shopper meets the definition of their target market. Small retail
stores may benefit from the traffic of nearby larger stores.

How many people walk or drive past the location.

Is the area served by public transportation?

Can customers and delivery trucks easily get in and out of the parking lot?

Is there adequate parking?

Depending on the type of business, it would be wise to have somewhere between 5 to 8 parking
spaces per 1,000 square feet of retail space.

When considering visibility, look at the location from the customer's view point. Can the store be
seen from the main flow of traffic? Will your sign be easily seen? In many cases, the better
visibility your retail store has, the less advertising needed. A specialty retail store located six
miles out of town in a free standing building will need more marketing than a shopping store
located in a mall.

COMPETITION AND NEIGHBORS

Other area businesses in your prospective location can actually help or hurt your retail shop.
Determine if the types of businesses nearby are compatible you're your store. For example, a
high-end fashion boutique may not be successful next door to a discount variety store. Place it
next to a nail or hair salon and it may do much more business.

LOCATION COSTS
Besides the base rent, consider all costs involved when choosing a retail store location.

Who pays for lawn care, building maintenance, utilities and security?

Who pays for the upkeep and repair of the heating/air units?

If the location is remote, how much additional marketing will it take for
customers to find you?

How much is the average utility bill?

Will you need to make any repairs, do any painting or remodeling to have the
location fit your needs?

Will the retailer be responsible for property taxes?

The location you can afford now and what you An afford in the future should vary. It is difficult
to create sales projects on a new business, but one way to get help in determining how much rent
you can pay is A find out what sales similar retail businesses are making and how much rent
they're paying.

PERSONAL FACTORS
If you plan A work in your store, think about your personality, the distance from the shop A home
and other personal considerations. If you spend much of your time traveling to and from work,
the commute may overshadow the exhilaration of being your own boss. Also, many restrictions
placed on a tenant by a landlord, management company or community can hamper a retailer's
independence.

SPECIAL CONSIDERATIONS

Your retail shop may require special considerations. Make a list of any unique characteristic of
your business that may need to be addressed.

Will the store require special lighting, fixtures or other hardware installed?

Are restrooms for staff and customers available?

Is there adequate fire and police protection for the area?

Is there sanitation service available?

Does the parking lot and building exterior have adequate lighting?

Does the building have a canopy that provides shelter if raining?

What is the crime rate in the area?

Are there (blue laws) restrictions on Sunday sales?

Johnny Rockets is recognized worldwide

as the place to go for delicious food,
friendly service and a fun dining
experience. The companys casual
ambiance, upbeat music and passion for
guest engagement should be very wellreceived by our family-focused culture.
Theres really nothing quite like Johnny
Rockets here in Pakistan, and local
residents and area visitors should warmly
embrace what makes it so special.
Throughout the world, people appreciate
home-cooked goodness of classic
comfort food; good service and a bright,
clean, cheerful atmosphere.
Johnny Rockets serves simple, great-tasting food from a menu of all-American favorites,
including juicy 1/3-pound burgers, crispy American Fries, classic sandwiches and rich, delicious
hand-spun shakes. It's the place to go for friendly service, flavorful food, uplifting music and
relaxed, casual fun.

The all-American Rock n Roll theme is one that has proven to be universal and that leaps across
all geographic and cultural boundaries.
Address: Z Block DHA Lahore

OUR CATEGORIES:
The category of our given store
Retail fast food chain
By superior instruction of our respectable instructor, we selected johny rocket for its lacation
analysis assignment to satisfy the requirements of the course we study, retail management.
In terms of analysis of location of johny rocket we consider:

Consumer base

Paying Capacity

Socio Economic conditions of the residents around

A visible, accessible store location

Budget constraints

Parking

Competitors around

Store Size availability

And as far as the difference is considered

First it was in the CONSUMER BASE
Johny rocket basically target upper segment of the society and looks for rich paying families
around, targets Youth and Business Clients.

We see enormous potential in this highly populated region that, up until now, had never seen a
fun-focused restaurant like Johnny Rockets, explained Fuller. As an economic hub in one of
Pakistans most accessible cities, we foresee exponential opportunities in this rapidly expanding
consumer market.
Another difference being the STORE SIZE
Less than a month after its flagship restaurant was unveiled in Karachi, a second Johnny Rockets
opened doors on January 17th in Lahore, the countrys second largest city. The highly anticipated
opening is part of a strategic plan by Hamdan International to bring ten Johnny Rockets
restaurants to Pakistan within the next decade. Measuring 8,200 square feet and encompassing
multiple floor levels, this marks the companys largest restaurant of its more than 300 locations,
worldwide. This is a very big consideration before locating a store location.
VISIBILITY:
When considering visibility, look at the location from the customer's view point. Can the store be
seen from the main flow of traffic? Will your sign be easily seen? In many cases, the better
visibility your retail store has, the less advertising needed. A specialty retail store located six
miles out of town in a free standing building will need more marketing than a shopping store
located in a mall.
With a stunning glass-encased exterior and the signature neon signs of Johnny Rockets, corner
building of the street front Z Block venue is poised to attract local residents and visitors eager to
embrace the brands iconic taste of Americana.
Visibility becomes a very important factor in a store to increase the number of foot falls in the
store.
COMPETITORS:
With so many fast food chain stores present in the same city, or in the country, Johnny rockets
wanted to be the first catcher. It holds a huge space on the ground of commercial market, Z-block
DHA. While its competitors may have better place & location than jonny rockets.
SIGNAGE, ZONING AND PLANNING POLICIES:
Before signing a lease, be sure you understand all the rules, policies and procedures related to
your retail store location. Contact the local city hall and zoning commission for information on
regulations regarding signage. Ask about any restrictions that may affect your retail operation
and any future planning that could change traffic.
Johnny rockets running its fast food restaurant in a porches society DHA, where DHA makes
their own policies for the sake of betterment and maintenance of society. And every one is liable
to follow these rules and regulations.

COMPETITION AND NEIGHBORS:

Other area businesses in your prospective location can actually help or hurt your retail shop.
Determine if the types of businesses nearby are compatible you're your store. Johnny rocket
place itself in the cluster of food chain restaurants.