Retail Location

‡ Important due to-1-Prime consideration of customer¶s store choice, based on nearness to home/work, linked with other domestic work 2- strategic importance for sustainable competitive advantage. Merchnadise,price, assortments can b changed but not location of a store. competitors can¶t easily copy as they r precluded from locating there.3-entry of more and more co¶s in organized retail making difficult to find suitable location within budget,4-Forms an important P of place for a long time for adequate assurance for a success,5-It also influences the merchandise mix and interior layout of store.6-even with emergence of web location of store form an important step of retail strategy. ‡ 1-Location analysis - Factors affecting retail store location/site selection ±A-Macro level-based on research of cbb, 1) travel time to reach store 2) parking space availability 3)nearness of complimentary stores or even competitors store to attract more customers, 4) investment to b made for site as it impacts return -.so calculate catchments potential index. average transaction value within a viable drive or walk time.5)delivery effectiveness in relation to consumer perceptions and expectations,6)financing methods available for purchasing or leasing, if interest rate is more then entire cost ±benefit analysis gets impacted.

‡ 2-Trade area analysis. ‡ Retail market is one where any group of individuals who posses the ability. based on information available as any delay in decision on site selection can b costly mistake.‡ Location analysis cont‡ Besides above factors subjective judgment.occupation and many such variables which r useful to select market segments which finally becomes target markets for retailer .assesment of entrepreneur is also necessary.market area of any potential location to b identified. C¶s age gender income education family cahractorstics. desire and willingness to buy retail goods or services. Customer profile of a segment of the people with in such geographical area necessary to serve thru store as target market ‡ MNC¶s setting up stores in various countries start with country analysis-comprising demographic analysis and population characteristics. Retail trade area is the one geographic area within which retail customers reside or work.

8-owner occupied housing.18-. per capita income data helps in projecting demands for various merchandise. unemployment will affect purchasing power in that area.TV ownership. ‡ Above variables help location decision and also product line potential e. 13-income types. Buying power index and effective buying incomes r calculated to arrive at fairly accurate analysis of trade area.3-age distribution.9-rental status. economic factor i.2-population.e.g.16-occupation. toys shop location banana for children.‡ Trade area analysis cont-‡ Besides demographic factors.fertility rates.12-schools.19-vehicles owners 20telephone subscribers 21.17working women.10 religion.4-household size and type.6-marital status.15-departure time for work. Economic stability of area can b estimated from household incomes and expenditure patterns. 14poverty status. .7-family size and type.economic and infrastructural .11-language spoken.cultural and competitive environment prevailing trade area also needs to b analyzed‡ Information to b gathered-1-land area.

RSP is expected sales volume in rs within trade area as part of RMP.RMP is total sales value in rs of products or product lines from all stores of particular retail trade area . Individuals with similar needs r identified to define target market so that merchandise can b stocked accordingly. ‡ Major components to arrive at mkt potential-1.‡ Trade area analysis cont--‡ Mathematical models based on geodemographics r developed and being used in US for retail trade area analysis.amount of money C spend for products or product line ‡ Population statistics is also useful to arrive at mkt potential as per capita or per household basis or per family basis one can calculate potential of location . and RSF is expected sales volume. retail sales potential and retail sales forecast need to arrived from trade area analysis. ‡ Everyone in trade area will not b potential customer. ‡ Retail mkt potential.no of potential customers in given area and 2.

6-Temporary locations-exhibition sites. store display .better to study access roads etc before finalizing location.choice from shopping centre or business district or any other locality 5..It examines level of competition and retail sales in a given geographical area to measure competitive saturation( total square meter of retail space existing and potential) 2-outshopping-people resort to go and shop out of their traditional shopping area.‡ 3-Location strategy -after location analysis and trade area analysis site to b finalized based on 1-index of retail saturation. festival sites. ‡ Above macro environment factors need to b considered of retail location besides micro environment factors like store ambience design. merchandising.store features. design.4-types of location.rural and urban based on strategy and prosperity of each area. personnels.3-infrastructure. visual merchandising etc to make the organized retail store business successful ‡ Next-store layout.

secondary or a neighborhood. Stores +Petrol pumps.jewelry ‡ 2-Part of business district-A place of commerce .Types of locations ‡ Various options r to choose store locations as per target audience and kind of merchandise to b sold e. cosmetics . ‡ 1-Isolated store or a free standing location.g. convenience store would not b suitable near expensive jewelry or fashion store.g.3.colaba etc.apparel books . facilities -parking r ample Advertising for such locations stores r high to draw customers for store visit. rents r low.part of shopping center.May not spend on ads for drawing customers but rents r high and facilities parking problem. E. .isolated store. intense developments. few typical locations ±Freestanding.-usually along a traffic artery without any competitive stores around. high peak land rates.e.stores proximity in sequence with grocery. good accessibility thru transport from all parts . hotels cum fast food on highways due to high cost of travel and time place like Mumbai may not suit but based on catchments areas and time one can spend for travel .music . can b central.cannought place.g. laxmi rd.2-part of business district.

part of shopping center-a group of retail and other commercial establishments. neighborhood business districtunplanned shopping area ±super markets ‡ 3. . owned and managed as a single property.outlet center-manufacturers outlets.6-power-category dominant 7-theme basedleisure.for general merchandise convenience 3-.secondary b d evolved with spread of population with good mix of retailers.. ample parking availability forms an important consideration for choice.regional ±G. planned . it is a mall or strip center.‡ Location cont-.walkaway provided between two strips of stores in a mall. small stores with adequate transport.8. tourist oriented. 4-super-larger of regional 5-fashon/speciality-high end fashons.developed. where as strip center ±a row of stores with parking in front of strip stores.2-community. as established in west 8 basic types of shopping centers r defined-1neighborhood-for convinience. mall is typically climate controlled.M fashions etc.

a . traffic suitable to kind of products to b retailed. d) amenities available. e) buy/lease decision as per options) Product mix offered.select the best site available. d. gorgon. b) accessibility to market-thru public transport.in retail property developments e.Steps involved in choosing location‡ 1-Identify the market in which to locate the store.b .c. e)trade area analysis ‡ Step 3 and 4-identify alternate sites and select one based on a) traffic-pedestrian and vehicular. c) total no of stores and type of stores exist.g. d) laws and regulations. ‡ 1-market attractiveness to a retailer based on peculiarities of each area of wants for products and services ‡ 2. ‡ Trends. determine the market potential.e. c) competition and compatibility with other stores. 4. .2-evaluate the demand and supply within that market. towns analysis available . rail road connectivity. i.affects choice of location ‡ Make check lists for store location and site visit reports-see draft.3-idntify the most attractive site.market potential-based on a) demographics b) characteristics of households in the area.