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Sunday, January 26, 14

EVALUATING RETAIL LOCATIONS


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Sunday, January 26, 14

MATCHING LOCATION TO RETAIL STRATEGY


! The selection of a location type must reinforce the retailers strategy must be consistent with
! ! ! the shopping behavior size of the target market The retailers position in its target market

! Department Stores ! ! Specialty Apparel ! ! Category Specialists !


Sunday, January 26, 14

Mall Central Business District, Regional malls Power Centers, Free Standing

MATCHING LOCATION TO RETAIL STRATEGY


! The selection of a location type must reinforce the retailers strategy must be consistent with
! ! ! the shopping behavior size of the target market The retailers position in its target market

! Department Stores ! ! Specialty Apparel ! ! Category Specialists !


Sunday, January 26, 14

Mall Central Business District, Regional malls Power Centers, Free Standing

Sunday, January 26, 14

CONVENIENCE SHOPPING
Minimize the customers eort to get the product or service by locating store close to where customers are located

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COMPARISON SHOPPING
Customers have a good idea of what type of product they want, but dont have a strong preference for brand, model or retailer.

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COMPARISON SHOPPING

Sunday, January 26, 14

COMPARISON SHOPPING

Competing retailers locate Near one another

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COMPARISON SHOPPING

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COMPARISON SHOPPING

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Sunday, January 26, 14

SPECIALTY SHOPPING
Customers know what they want

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SPECIALTY SHOPPING

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SPECIALTY SHOPPING

Convenient location matters less

Sunday, January 26, 14

SPECIALTY SHOPPING

Sunday, January 26, 14

SPECIALTY SHOPPING

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Sunday, January 26, 14

ENVIRONMENTAL ISSUES

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ENVIRONMENTAL ISSUES
! Above-ground risks - such as
asbestos-containin materials or lead pipes used in construction.

! Hazardous materials - e.g. dry


cleaning chemicals, motor oil, that have been stored in the ground.

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ENVIRONMENTAL ISSUES

Sunday, January 26, 14

ENVIRONMENTAL ISSUES
Retailers Protection
Stipulate in the lease that the lessor is responsible for removal and disposal of this material if its found. Retailer can buy insurance that specically protects it from these risks.

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d e s u e b n a c e t i s a w o h g n i n Zo

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Sunday, January 26, 14

f o e p y t e h t e n i , t m o r l e t g e n i k -d r s a e p d f o o c e Building igns, size, typ ,s g n i d l d i e s bu u e b n a c t a etc. th


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Sunday, January 26, 14

s n g i S

Sunday, January 26, 14

s n g i S
g n i s n Lice
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s t n e m e r i u Req

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FACTORS AFFECTING STORE SITE SELECTION

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Sunday, January 26, 14

S N O I T I D N O C C I M O N O C E

Sunday, January 26, 14

S N O I T I D N O C C I M O N O C E
t n e m y o l p m e nd a n o i t a l u p o p growth of

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S N O I T I D N O C C I M O N O C E

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S N O I T I D N O C C I M O N O C E
? e s i d n a h c r e m r o f d n a m de t c e e l l i w t How i

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S N O I T I D N O C C I M O N O C E

Sunday, January 26, 14

S N O I T I D N O C C I M O N O C E
How e? u n i t n o c l l i hw t w o r g e h t long

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S N O I T I D N O C C I M O N O C E

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S N O I T I D N O C C I M O N O C E
y? h w d n a y l k uic q g n i w o r g Which areas

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S N O I T I D N O C C I M O N O C E

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Sunday, January 26, 14

COMPETITION

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COMPETITION
n a b r u g n i o g e r a s r e l i Reta

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COMPETITION

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COMPETITION

n o i t i t e p m o Lack of c

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COMPETITION

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COMPETITION
b a s o p s i d f o High level income le

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COMPETITION

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COMPETITION
r o b a l d e p p a Large, unt force

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COMPETITION

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STRATEGIC FIT

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STRATEGIC FIT

ize and s , le o r p le , lifesty ic h p a r g o n area m a in De s ld o h e of hous n io it s o p m co

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Sunday, January 26, 14

? d e t a c o l e b ey h t d l u o h s Where
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Sunday, January 26, 14

OPERATING COST

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OPERATING COST
s a e r a s s o r c Vary a

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OPERATING COST

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OPERATING COST

. s v d e r e d i s n o c a e r a f o y it m i x o r p y b d s e t a r e p Aecte o r ile a t e r e r e h w other areas

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OPERATING COST

Sunday, January 26, 14

OPERATING COST

t c e e s a h nt e m n o r i v n e gal e l e t a t s d n Local a

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OPERATING COST

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Sunday, January 26, 14

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? a e r A n a n i n e p O o t s re o t S y n a M How

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Sunday, January 26, 14

e l a c S f o s e Economi

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e l a c S f o s e Economi

n o i t a z i l a b i Cann

Sunday, January 26, 14

e l a c S f o s e Economi
One prom

n o i t a z i l a b i Cann

s e r o t s l l a r o f s otional cost

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e l a c S f o s e Economi

n o i t a z i l a b i Cann

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e l a c S f o s e Economi
re o t s r e p s e l a Increases s

n o i t a z i l a b i Cann

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e l a c S f o s e Economi

n o i t a z i l a b i Cann

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e l a c S f o s e Economi
l mar a n o i g e r f o s Target need ket

n o i t a z i l a b i Cann

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e l a c S f o s e Economi

n o i t a z i l a b i Cann

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e l a c S f o s e Economi

n o i t a z i l a b i Cann

et k r a m f o l o r cont s a h t n e m e Manag

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e l a c S f o s e Economi

n o i t a z i l a b i Cann

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POSSIBLE DISPUTE BETWEEN FRANCHISE AND FRANCHISORS ON CANNIBALIZATION ISSUES


! Cannibalization diminishes returns from locating too many stores in an area ! Franchisers goal: to maximize sales of all stores (because loyalty is based
on total store sales ! No concern about cannibalization

! Franchisees goal: to maximize the sales and prots of its store(s)


! Concern about cannibalization

! An exclusive territory is granted to reduce conict


Sunday, January 26, 14

POSSIBLE DISPUTE BETWEEN FRANCHISE AND FRANCHISORS ON CANNIBALIZATION ISSUES


! Cannibalization diminishes returns from locating too many stores in an area ! Franchisers goal: to maximize sales of all stores (because loyalty is based
on total store sales ! No concern about cannibalization

! Franchisees goal: to maximize the sales and prots of its store(s)


! Concern about cannibalization

! An exclusive territory is granted to reduce conict


Sunday, January 26, 14

Sunday, January 26, 14

EVALUATING A SITE FOR LOCATING A RETAIL STORE

Sunday, January 26, 14

EVALUATING A SITE FOR LOCATING A RETAIL STORE

!The characteristic of the site !The characteristic of the trading area !The estimated potential sales that can be generated

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Sunday, January 26, 14

SITE CHARACTERISTICS

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SITE CHARACTERISTICS

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Sunday, January 26, 14

TRAFFIC FLOW AND ACCESSIBILITY

Sunday, January 26, 14

TRAFFIC FLOW AND ACCESSIBILITY


o h s s r e m o t s cu e r o m , r e t a re g s i c a r t n Whe p

Sunday, January 26, 14

TRAFFIC FLOW AND ACCESSIBILITY

Sunday, January 26, 14

TRAFFIC FLOW AND ACCESSIBILITY


s r e l i a t e r e c ien n e v n o c r o f Good

Sunday, January 26, 14

TRAFFIC FLOW AND ACCESSIBILITY

Sunday, January 26, 14

TRAFFIC FLOW AND ACCESSIBILITY


r e l i a t e r n o i t na i t s e d r o f y r Not necessa s

Sunday, January 26, 14

TRAFFIC FLOW AND ACCESSIBILITY

Sunday, January 26, 14

TRAFFIC FLOW AND ACCESSIBILITY


e r o t s o t s s e cc a e d e p m i n h ca

Too muc

Sunday, January 26, 14

TRAFFIC FLOW AND ACCESSIBILITY

Sunday, January 26, 14

TRAFFIC FLOW AND ACCESSIBILITY


w o c a r t s important a

s i e r o t s o t y Accessibilit

as

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TRAFFIC FLOW AND ACCESSIBILITY

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Sunday, January 26, 14

Sunday, January 26, 14

ACCESIBIL IT

Sunday, January 26, 14

ACCESIBIL IT
n o i t i d n o C & n r e t t a Road P

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ACCESIBIL IT

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ACCESIBIL IT
Natural r e i r r a B l a i & Artic s

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ACCESIBIL IT

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ACCESIBIL IT
Visibility

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ACCESIBIL IT

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ACCESIBIL IT
w o l F c a r T

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ACCESIBIL IT

Sunday, January 26, 14

ACCESIBIL IT
Parking

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ACCESIBIL IT

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ACCESIBIL IT
n o i t s e g n Co

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ACCESIBIL IT

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PARKING CONSIDERATIONS

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PARKING CONSIDERATIONS
Observe at variou s times

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PARKING CONSIDERATIONS

Sunday, January 26, 14

PARKING CONSIDERATIONS
Employe e parking availabili ty

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PARKING CONSIDERATIONS

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PARKING CONSIDERATIONS
Shoppers that use c ars

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PARKING CONSIDERATIONS

Sunday, January 26, 14

PARKING CONSIDERATIONS
Parking b y non-shop pers

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PARKING CONSIDERATIONS

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PARKING CONSIDERATIONS
!"#$%&'(') *+,-(./(& (0- . # # $ * + (,1$#

Sunday, January 26, 14

PARKING CONSIDERATIONS

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Sunday, January 26, 14

Sunday, January 26, 14

S T N A N E T T N ADJACE

Sunday, January 26, 14

S T N A N E T T N ADJACE
t n e c ja d a ) g in t e p com o ls a ( y r a t n e m le Comp c retailers build tra

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S T N A N E T T N ADJACE

Sunday, January 26, 14

S T N A N E T T N ADJACE
d e t a c lo e b o t t n a w P A G ld u o w s r e il a What ret near?

Sunday, January 26, 14

S T N A N E T T N ADJACE

Sunday, January 26, 14

S T N A N E T T N ADJACE
? s k c u b r a t S t u o b How a

Sunday, January 26, 14

S T N A N E T T N ADJACE

Sunday, January 26, 14

S T N A N E T T N ADJACE
ss e n e iv t c a r t t A e iv t la Principle of Cumu

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S T N A N E T T N ADJACE

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R E T N E C G N I P P O H S A N I / W S LOCATION

Sunday, January 26, 14

R E T N E C G N I P P O H S A N I / W S LOCATION
s t s o c y c n a p u c c do n a s le a s h t o b s t c Ae

Sunday, January 26, 14

R E T N E C G N I P P O H S A N I / W S LOCATION

Sunday, January 26, 14

R E T N E C G N I P P O H S A N I / W S LOCATION
g in p p o h s n o is r a p m e shopping mall co r o t s t n e m t r a p e ed h t o t e s lo c e t a c lo goods

Sunday, January 26, 14

R E T N E C G N I P P O H S A N I / W S LOCATION

Sunday, January 26, 14

R E T N E C G N I P P O H S A N I / W S LOCATION
ets because rk a m t e rg ta r a il peal to sim p a t a th s re to s ent of te a m rt o Loc s s a d o o g a laces with p t a p o h s rs e m u s con merchandise

Sunday, January 26, 14

R E T N E C G N I P P O H S A N I / W S LOCATION

Sunday, January 26, 14

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Sunday, January 26, 14

S N O I T C I R T S RE

Sunday, January 26, 14

S N O I T C I R T S RE
Signage

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S N O I T C I R T S RE

Sunday, January 26, 14

S N O I T C I R T S RE
Tenant Mix

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S N O I T C I R T S RE

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S N O I T C I R T S RE
Operating Hours

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S N O I T C I R T S RE

COST

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S N O I T C I R T S RE

COST
Rent

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S N O I T C I R T S RE

COST

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S N O I T C I R T S RE

COST
Common Area Maintenance Fee

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S N O I T C I R T S RE

COST

Sunday, January 26, 14

S N O I T C I R T S RE

COST
Insurance

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S N O I T C I R T S RE

COST

Sunday, January 26, 14

S N O I T C I R T S RE

COST
Advertising Fee

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S N O I T C I R T S RE

COST

Sunday, January 26, 14

Sunday, January 26, 14

TRADE AREA
! A contiguous geographic area that accounts for the majority of a stores sales and customers ! Primary zone 60 to 65 percent of its customers ! Secondary zone 20 percent of a stores sales ! Tertiary zone customers who occasionally shop at the store or shopping center

Sunday, January 26, 14

TRADE AREA
! A contiguous geographic area that accounts for the majority of a stores sales and customers ! Primary zone 60 to 65 percent of its customers ! Secondary zone 20 percent of a stores sales ! Tertiary zone customers who occasionally shop at the store or shopping center

Sunday, January 26, 14

Sunday, January 26, 14

ZONES IN THE TRADE AREA

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FACTORS AFFECTING SIZE OF TRADE AREA


! Accessibility !Natural & Physical Barriers !Type of Shopping Area !Type of Store !The nature of merchandise, assortment, location of alternative sources for the merchandise !Competition !Parasite Stores

Sunday, January 26, 14

FACTORS AFFECTING SIZE OF TRADE AREA


! Accessibility !Natural & Physical Barriers !Type of Shopping Area !Type of Store !The nature of merchandise, assortment, location of alternative sources for the merchandise !Competition !Parasite Stores

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Sunday, January 26, 14

MEASURING TRADE AREA


! Customer Spotting
! Purpose: to spot, or locate, the residences of customers for a store or shopping center

How to obtain data:


!credit card or checks !customer loyalty programs !manually as part of the checkout process !automobile license plates
Sunday, January 26, 14

MEASURING TRADE AREA


! Customer Spotting
! Purpose: to spot, or locate, the residences of customers for a store or shopping center

How to obtain data:


!credit card or checks !customer loyalty programs !manually as part of the checkout process !automobile license plates
Sunday, January 26, 14

Sunday, January 26, 14

A T A D S U S N CE

Sunday, January 26, 14

Sunday, January 26, 14

A E R A E D A R T E H T N I N O I T I T E P M CO

Sunday, January 26, 14

A E R A E D A R T E H T N I N O I T I T E P M CO
e p y T d n a t n Amou

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A E R A E D A R T E H T N I N O I T I T E P M CO

Sunday, January 26, 14

A E R A E D A R T E H T N I N O I T I T E P M CO

Internet

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A E R A E D A R T E H T N I N O I T I T E P M CO

Sunday, January 26, 14

A E R A E D A R T E H T N I N O I T I T E P M CO

s e g a P w o l l e Y

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A E R A E D A R T E H T N I N O I T I T E P M CO

Sunday, January 26, 14

A E R A E D A R T E H T N I N O I T I T E P M CO

Store guide

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A E R A E D A R T E H T N I N O I T I T E P M CO

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A E R A E D A R T E H T N I N O I T I T E P M CO

ETC

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A E R A E D A R T E H T N I N O I T I T E P M CO

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Sunday, January 26, 14

INDICES FOR ASSESSING SALES POTENTIAL


Market Potential Index (MPI) Number of Households Purchasing a Product or Service in a Trade Area Spending Potential Index (SPI) Average Amount Spent on a Product or Service by a Household in a Trade Area

Sunday, January 26, 14

INDICES FOR ASSESSING SALES POTENTIAL


Market Potential Index (MPI) Number of Households Purchasing a Product or Service in a Trade Area Spending Potential Index (SPI) Average Amount Spent on a Product or Service by a Household in a Trade Area

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Sunday, January 26, 14

LEASE TYPES

Sunday, January 26, 14

LEASE TYPES

e t a R d e x i F Percentage

Sunday, January 26, 14

LEASE TYPES

Sunday, January 26, 14

LEASE TYPES

o d e s a b e s a e l s e s a e l e g a Percent a % of sales.

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LEASE TYPES

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LEASE TYPES

f o e g a t n e c r e p n o d e s a b fee e c n a n e t n i ma sed a e l f o e g a t square foo

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LEASE TYPES

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Sunday, January 26, 14

E S A E L % F O S N VARIATIO

Sunday, January 26, 14

E S A E L % F O S N VARIATIO
ed i c e p s h t i ew s a e l e a g o a t t p n u s e l a Perce s of e g a t n e c r e p m u m i x a m nt u o m a m u maxim

Sunday, January 26, 14

E S A E L % F O S N VARIATIO

Sunday, January 26, 14

E S A E L % F O S N VARIATIO
ng i w o l l a y b e nc a m r o f r e p r ile a t a e r e v s o d r b a a w t n Re a t ns o c t n e r d l o retailer to h f sales lo certain leve

Sunday, January 26, 14

E S A E L % F O S N VARIATIO

Sunday, January 26, 14

E S A E L % F O S N VARIATIO
ed i c e p s h t i ew s a m e l u e m i g n a i t n m e a c r ay Pe p t s u m r e l i a ret m . u e r m i a n s i e l m a s w o wl o h r e t t a m rent no

Sunday, January 26, 14

E S A E L % F O S N VARIATIO

Sunday, January 26, 14

E S A E L % F O S N VARIATIO
nt e r s a s e l a s f o e g a t n e c r e p e l a c s g n i d i Sl . p u o g s e l s sa a s e s a e r c e d

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E S A E L % F O S N VARIATIO

Sunday, January 26, 14

Sunday, January 26, 14

LEASE TYPES

Sunday, January 26, 14

LEASE TYPES
ys a a p r e l i a t e -R s e s a e L f e o t e a f i R l e d h e t x r i F ve o h t n o m r pe t n u o m a d xe the lease.

Sunday, January 26, 14

LEASE TYPES

Sunday, January 26, 14

LEASE TYPES
y b s e s a e r c in t n e R e s a e L d d e o t i r a e u p d d e Gra ci e p s a r e v o nt u o m a d e x a of time.

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LEASE TYPES

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Sunday, January 26, 14

TERMS O F LEASE

Sunday, January 26, 14

TERMS O F LEASE
e s u a l C e s U d e t i b i h o r P

Sunday, January 26, 14

TERMS O F LEASE

Sunday, January 26, 14

TERMS O F LEASE

o t g n i s a e l m fro d r o l d n a l e Limits th s. t n a n e t n i a t cer

Sunday, January 26, 14

TERMS O F LEASE

Sunday, January 26, 14

TERMS O F LEASE
e s u a l C e s Exclusive U

Sunday, January 26, 14

TERMS O F LEASE

Sunday, January 26, 14

TERMS O F LEASE

o t g n i s a e l m fro d r o l d n a l e ise d n a h c r e Prohibits th m ng i t e p m o c g in retailers sell

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TERMS O F LEASE

Sunday, January 26, 14

TERMS O F LEASE

e s u a l C e p a c Es

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TERMS O F LEASE

Sunday, January 26, 14

TERMS O F LEASE

s dont le a s if e s a le inate its , or if a s m r r a e e t y o f t o r r e e il eta d numb e i c e p Allows the r s a r vel afte s lease it le s in e t a t a r e in c m a r reach nter te e c e h t in t n ena specic co-t

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TERMS O F LEASE

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Sunday, January 26, 14

THANKS!

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