Chapter-2 - Last Na Last Nato

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 16
store is a place where you can meet friends and neighbors and catch up on the local gossip
around the block whenever you like. It is also the tambayan (hangout place) of the youths
when eating or drinking snacks and soft-drinks.
As the economy grows, big corporations start to modernize sari-sari stores. Once
“modern” convenience stores “own” the main cities, they will inevitably expand into the sari-
sari heartland – the local village.
According to the biggest convenience store chain in the world, and in the Philippines
– the 7-Eleven, announced it was stepping up its momentum with more strategic franchising
initiatives as part of its aggressive expansion plan. Philippines Seven Corp. (PSC) – the
holder of 7-Eleven Philippines – is targeting to open 375 new stores in various strategic
locations this 2018, mostly in Region 2 and in Eastern Visayas.
Ministop Philippines Inc. – held by Robinsons Retail Holdings (RRH), which raised its
stake in Ministop Philippines Inc. to 59.1 percent from 51 percent. Robina Gokongwei-Pe,
president and CEO of Robinsons Retail, said their decision to increase their investment in
Ministop was in line with their commitment to grow the Ministop chain in the country. As of
end-March, there are 489 convenience stores under the Ministop brand.
The All Day Convenience Store – the convenience store division of All Value Holdings
Inc., started in 2008 when the former senator Manny Villar venture in the convenience store
business and established Finds Convenience Store. Seeing the potential of Finds, Villar re-
branded it as All Day Convenience Store.
The growing Alfamart Philippines plans to add 150 more outlets to its present 400
stores, and is set to enter regions outside of Manila.
The Lawson – with a joint venture with Puregold Price Club, plans to open 500 stores
in the Philippines by 2020.

These expansions will prove that the modern convenience stores will not just be for
the urban areas and cities. It will expand furthermore into rural areas and supersede the
traditional convenience stores.
These “modern” convenience stores provide the same goods with the “traditional”
ones, and can also be located in residential areas. These convenience stores also have the
suki system in the form of “rewards” where the customer earns points when buying products
and/or services. Furthermore, these stores can be the tambayan of youths, when waiting for
their friends.
The big difference of the “traditional” and “modern” convenience store is that the latter
provides wider variety of products. For example, ice cream, magazines, and umbrellas. They
also have the latest technologies and equipment that can provide faster, more convenient
experience. Some of the stores have Wi-Fi, one of the most important services in the
modern age. Thus, this can attract more customers than the traditional one.
The common problem of sari-sari stores is that sometimes it can be out of products
that the customer needed. It is rarely a problem in a modern convenience store because of
its frequent inventory re-stocking. Almost all of modern convenience stores are air-
conditioned, have security guards, and often some tables where customers can eat and
wait, that most of traditional stores had none.
General Services of a Retailer
According to Pondicherry University (2013) the general services which a retailer
provides includes:
1. The retailer anticipates the wants of the consumers and then supplies them the
right kind of goods at reasonable price. His job is to make the consumers buying
as easy and convenient as possible i.e. he acts a consumers’ agent.
2. He performs the service of bulk-breaking i.e. dividing large quantities into small
units, such as individual cans, bottles, boxes, wrappers, packages, appropriate for
consumer use.
3. He offers a large assortment of merchandise, of suitable size, color, design, style
and seasonal items-ranging from domestic utensils, household requisites to
specialty goods.
4. He creates time and place utility by storing the products in off season and by
transporting these goods to the places where they can be readily available as and
when needed by the consumer.
5. He also assumes risk by guaranteeing the goods he sells to the consumer.
6. He also offers free delivery of goods, credit on open accounts, free alteration,
liberal exchange facilities, instructions in the use of goods, revolving credit plans,
and long term installment programs.
7. He adds to the convenience and ease of consumer purchasing by offering
convenient shopping locations, market information, and other services such as
free parking privileges, lessons on products use, and a multitude of other facilities
may be offered and found sufficiently desired to result in increased patronage.
8. He helps the producers in distributing their products by using advertisement
display and personal selling.
9. The level of retail sales is one of the most useful barometers of the nation’s
economic health. For example when sales of cycles pick-up, sales of steel and
components also increase, as does employment and thus increasing purchasing
power. But when sales go down, manufacturers cut back production,

unemployment increases and retail sales also goes down.
Retailing encompasses the business activities involved in selling goods and services
to consumers for their personal, family, or household use. It includes every sale to the final
consumer – ranging from cards to apparel to meals at restaurants to movie tickets. Retailing
is the last stage in the distribution process (Berman & Evans, 2018).
Benefits of Organized Retail
Retailing activity can also be viewed as a significant contributor to the economy in
general.
According to Cant (2010) the concept of organized retail implies that there are well
defined players in the market such as producers, vendors, suppliers, customers and service
providers. The players interact with each other with predefined and organized processes,
resulting in overall efficiency in the buying and selling value chain with benefits accruing to
all the players.
One of the outcomes of organized retailing is the economic benefits to both producer
and consumer. Therefore, benefits due to organized retailing can be includes:
1. Better prices to producers as intermediaries are eliminated from the process.
2. Better prices to consumers as large retail chain leverage economy of seals to drive
larger discounts from producers, and therefore, able to offer lower prices.
3. Creation of better infrastructure leading to better storage and display of products,
enhancing consumer’s experience.
4. Job creation across the value chain thereby, opening up multiple employment
opportunities of newer kind.
5. Tax revenue optimization for Government and municipalities as all taxes and levies
are paid across the chain with fewer avenues of avoidance.
Challenges to Organized Retail
Retailers look to certain aspects which would be important in decision making and
enable a sustained development of retail stores. One of the biggest challenges to organized
retailers is the competition from the unorganized sector of retailers.
Unorganized retail is largely owner operated with low cost structures, and overheads
and thereby, results in much lower labor costs, avoidance of taxes to a large extent which is
the choice of customers.
One of the disadvantages of organized retailing is higher labor costs, better and larger
physical infrastructure, employee benefits and government taxes to pay. This give rise to
much larger expenses than the unorganized sector.
Another major area of concern for organized retailing is the properly trained sales
personals and skill improvements of the existing personals.
Overall, challenges increases the price of products offered by retailers and lowers the
demand of the product. Despite these issues and challenges, the organized retail
momentum is growing. The Government must enumerate clear policies and regulatory
framework to ensure its sustained growth (Cant, 2010).
Importance of Location to Retail Companies
Retail location is considered to be one of the most important elements in retail
marketing strategy, because it is a long-term decision, associated with long-term capital
commitment. The selection of retail store locations is one of the most significant decisions in
retail marketing, because in store-based retailing, good locations are key elements for
attracting customers to the outlets and sometimes can even compensate for a mediocre
retail strategy mix. A good location therefore can lead to strong competitive advantages,
because location is considered one of the elements of the retail marketing mix that is
“unique” and thus cannot be imitated by competitors.
Location decisions are very complex due to the large number of factors that have to
be considered and costs associated. For example, the opening of new stores, can be very
high. Once a retail site has been chosen, there is only little flexibility because this decision
usually cannot be changed easily without high losses. Its fixed nature makes the location
unchangeable in the short term, contrary to other elements of retail marketing mix such as
prices, customer service, the product assortment, or advertising. These latter factors can be
altered if the environment (e.g. consumer behavior, competition) changes.
There are three basic types of locations available for retail stores: solitary sites,
unplanned shopping areas, and planned shopping districts. Each of the basic location types
is associated with specific advantages and disadvantages according to restrictions placed
on store operations or convenience of the location such as the size of the catchment area,
occupancy costs, pedestrian or vehicle customer traffic.
1. Solitary Sites (Free-Standing Sites, Isolated Sites)
This type of location related to single, free standing outlets that are isolated
from other retailer. They can, for instance, be positioned on beside roads or near
other retailer or shopping centers.
2. Unplanned Shopping Areas
These are retail locations with several outlets in close proximity to each other
that have evolved over time. The retail mix is not the result of long range planning
and for such locations, there is no centralized management. The main kind of
unplanned shopping areas are central business districts, neighborhood districts,
and strip or string locations.
3. Planned Shopping Districts
Planned shopping areas are retail locations that have been architecturally
planned to provide a unified theme for a number of outlets. These sites are
developed deliberately and usually have some large, key retail brand stores and a
number of smaller retailers to add diversity and special interest.
The decision as to which kind of retail location to select depends on the company’s
strategy. It is an integral part of the retail location decision process.
Retail location decisions typically follow a systematic process that starts with a
general assessment of geographic areas and leads to a detailed assessment of specific site
characteristics. This process can broadly be described as a three step selection process:
1. Market selection: The first step is the consideration of a region has potential for a
new retail outlet.
2. Area analysis: Within the chosen region, a potentially optimal area for the store is
selected.
3. Site evaluation: In the chosen geographical area, the best available site(s) are
examined in terms of all features that are relevant to potential store performance.
This step concludes with a final decision as to the specific site.
The analysis of the catchment area (trading area, market area) of a specific region or
a specific site is of high importance in each phase of this retail location decision process.
The catchment area is the geographic area that contains the customers of a particular site
or region for a company or a group of companies for specific goods or services. Thus, it
determines the potential demand at a particular site and, among other factors, influences
potential sales and profitability. Usually, the catchment area is divided into three parts. The
primary trading area is the zone in which the majority of customers are based. It
encompasses 50% to 80% of the customers. The secondary trading area contains about
15% to 25% and the fringe or tertiary trading area includes the remaining customers that
shop occasionally at a location as an alternative to local shopping.
The appropriateness of a specific site is based upon the retailer’s strategy (retail
formats, merchandise, pricing strategy, etc.) and it is influenced by a substantial number of
factors that need to be investigated. A selection of location factors is presented in Table 1.
In order to guide retail location decisions and to assess profitability or forecast the potential
sales of retail stores in a specific region, numbers of techniques have been developed to
assess the sites.

Table 1
Selected Location Factors
Customers
Accessibility Competition Costs
(potential/actual)
 Numbers by  Site visibility  Existing retail  Purchase

demographics  Pedestrian activity (direct price
(e.g. population flows / indirect  Building
size, age  Pedestrian competitors, Costs
profile, entry routes anchor stores,  Rent Costs
household  Barriers such cumulative  Leasing
size) as railway attraction, Terms
 Income level tracks, rivers compatibility)  Site
 Disposable  Type of  Existing retail Preparation
income per location zone specification  Building
capita  Car ownership (selling area, restrictions
 Employment by level turnover  Development
occupation,  Road network estimates, concessions
industry, trends  Parking department or  Rates
 Housing  Public product payable
density transport analysis,  Refurbishmen
 Housing  Visibility
trade areas, t needs
car parking)
age/type  Access for  Maintenance
 Neighborhood  Saturation costs
staff
index
classification  Access for  Security
 Home-  Competitive needs
transport and
potential
ownership delivery  Staff
levels  Proximity of availability
 Spending key
 Labor rates
patterns competitors,
 Delivery costs
 Shopping traders, brand
leaders  Insurance
Patterns costs
 Population  Promotional
growth, density media costs
and trends  Turnover loss
 Lifestyle  Other
measures branches
 Cultural or
ethnic grouping
Location decisions have a major impact on a retail outlet’s success, as location is an
important factor in consumers’ store choice. The location decision also has a long term
impact as it is not very flexible. Thus, location decisions are of critical importance for
retailers’ competitive advantages. Establishing a retail store can, for example, influence
shopping patterns, traffic and pedestrian flows or the retail structure of a town. In many city
marketing initiatives, an attractive retail mix is known to be one of the key elements of
attracting customers to a particular town or city. Local authorities, therefore, try to attract
retailers with a good image so that the latter open stores in their towns or cities (Tanase,
2010).
In 2009, Berman and Evans stated that the choice of a location requires extensive
decision making due to the number of criteria considered, including population size and
traits, the competition, transportation access, parking availability, the nature of nearby
stores, property costs, the length of agreement, legal restrictions, and other factors.
An isolated store is a freestanding retail outlet located on either a highway or a street.
There are no adjacent retailers with which this type of store shares traffic.
The advantages of this type of retail location are many:
- There are no competitions in close proximity
- Rental costs are relatively low
- There is flexibility; no group rules must be followed in operations and
larger space may be obtained
- Isolation is good for stores involved in one-stop or convenience shopping

However, there are also various disadvantages to this retail location type:
- Initial customers may be difficult to attract
- Many people will not travel very far to get to one store on a continuous
basis
- Most people like variety in shopping
According to Scarborough (2014), retail stores should be located where market
opportunities are best. After a country, region city, or trade area, and neighborhood have
been identified as satisfactory; a specific site must be chosen that will best serve the desired
target market. The primary role of the retail store or center is to attract the shopper to the
location. Alternatively, retailers must take the store to where the people are, either at home
or in crowds. Examples of taking the store to where the crowds are include airport location,
theme parks and vending machines.
Choosing the right location is a key success factor for retailers, the best location
usually is one that is most convenient for their customers. A proper location is critical to the
success of any small business and franchises are no exception. Many franchisor conduct an
extensive location analysis for each new outlet including researching traffic patterns, zoning
ordinances, accessibility and population density. Retail stores with physical locations rely on
customers walking in and taking the goods they purchase with them.
Few decisions are as important for retailers and service firms as the choice of a
location because their success depends on a steady flow of customers. These businesses
must locate their business with their target customers’ convenience and preferences in
mind. The following are important considerations:

1. Trade Area size – every retail and service business should determine the extent of
its trading area, the region from which a business can expect to draw customers
over a reasonable time span. The primary variables that influence the scope of
trading area are the type and the size of the business. If a retail store is specializes
in a particular product line and offers a wide selection and knowledgeable
salespeople, it may draw customers from a great distance. In contrast, a
convenience store with a general line of merchandise has a small trading area
because it is unlikely that customers will drive across town to purchase items that
are available within blocks of their homes or businesses. As a rule, the larger the
store, the greater its selection, and the better its service, the broader is its trading
area.
2. Retail Compatibility – describes the benefits a company receives by locating near
other businesses that sell complementary products and services or that generate
high volumes of foot traffic.
3. Index of Retail Saturation – a measure of potential sales per square foot of store
space for a given product within a specific trading area.
4. Physical and Psychological Barriers – Physical barriers may be parks, rivers, lakes,
bridges or any natural or man-made obstruction that hinders customers’ access to
the area. Locating on one side of a large park may reduce the number of customers
who will drive around it to het to a store. Psychological barriers include areas that
have a reputation for crime and illegal activities. If high crime areas exist near a site,
potential customers will not travel through them to reach a business.
5. Customer Traffic – The most important screening criterion for a potential retail
location is the number of potential customers passing but the site during business
hours. To be successful, a business must be able to generate sufficient sales to
surpass its break-even point, and that requires an ample volume of customer traffic
going past its doors. The key success factor for many retail stores is a high-volume
location with easy accessibility. Entrepreneurs should use traffic counts (pedestrian
and/or auto) and traffic pattern studies to confirm that the sites they are considering
as potential locations are capable of generating sufficient sales volume. Adequate
Parking – if customers cannot find convenient and safe parking, they are not likely
to shop in the area. Even if free parking is available, some potential customers may
not feel safe on the streets, especially during dark.
6. Visibility – highly visible locations simply make it easy for customers to find a
business and make purchases. A site that lacks visibility puts a company at a major
disadvantage before it ever opens its doors for business
7. Neighborhood Locations - Small businesses that locate near residential
neighborhoods rely heavily on the local trading are for business. Businesses that
provide convenience as a major attraction for customers find that locating on a
street or road just outside major residential areas provide the needed traffic counts
essential for success. Gas station and convenience store thrive in these high-traffic
areas. One study of food stores found that the majority of the typical customers live
within a five mile radius. The primary advantages of a neighborhood location include
relatively low operating rent and close contact with customers.
According to entrepreneur Jake Fox, accessibility is one of the important key factors in
a business. Especially if a business relies on high customer football, then ensuring the
business’ location is accessible by car, by bus and even by trail will all be important
considerations.
In short, location and site selection is one of the most important decisions made by a
retail owner. We need to look for ways to optimize this process. (Pondicherry, 2013).
Importance of Proper Inventory Management
Retailers serve consumers by providing a variety of products to them. Thereby they
have to be able to sell any product at the demand of the consumer. Store-based retailers
display their assortment in the store, i.e. groceries.
In the food segment the consumers expect to be able to buy at the moment they enter
the store. The desired item should be available and ready to be bought, i.e. on shelf.
Therefore, the on-shelf availability (OSA) is a key performance indicator of any retailer store.
Reports on OSA show different values depending on time, product category, type of
stock (permanent, seasonal, promotional e.g. one week), retail format (e.g. supermarket,
discount), day of the week, time of day (i.e. bakery products). The OSA ranges from below
80% with ultra fresh products (i.e. bakery, fruits, poultry, meat) to 98% (canned foods).
Although 98% sounds like a good performance, given the intense competition and low
margins in the retail sector, any slight increase of OSA relative to competitors will have large
effect on sales and profit. What happens if the item is not available?
The consumer may leave the store to shop another store, he then selects another
item as form of substitution, or he postpones his purchase till next time in this store. In
general, the occurrences of out-of-stocks reduce the retailer's and manufacturer's revenue.
They are detrimental to consumer's loyalty and they deteriorate store's brand image
(Trauzettel, 2014).
Utility
According to Whalley (2010), Utility is a measure of the relative satisfaction from, or
desirability of consumption of various goods and services. Given this measure, one may
speak meaningfully of increasing or decreasing utility and thereby explain economic
behavior in terms of number of attempts to increase one’s utility. The product and/or service
and marketing of the product and/or service form the foundation of the exchange process
and together they create a utility.
In marketing we define utility as the want-satisfying power of a good or service.
Richard Burskirk (1975) has presented an idea that marketing is an activity that creates
form, place, time, and ownership utility;
1. Form utility: The usefulness of a product that results from its form; converting raw
materials into finished products. Product planning and development activities
create form utility.
2. Time utility: Making a product available when consumers want to purchase it. After
manufactured goods are stored by the manufacturers, wholesalers, retailers, etc.
until such time. The demand of the product is created and such goods are made
available to the customer at the time when they are needed or demanded.
3. Place utility: Making a product available in a location convenient for customers,
the flow of goods through different distribution channels from producer to
consumer, or from the place where it is abundant to the place where they are
needed, creates place utility.
4. Ownership utility: Refers to the orderly transfer of legal title of the product and/or
service/s from the seller to the buyer via a sales transaction. Goods may be lying
in a reliable state with producer, the manufacturer or their agents until some other
person needs them.
Product Selection Criteria
According to Varley (2014), when making decisions about introducing a new product
or brand or making changes to an existing product, to update it perhaps, a buyer has to
consider a product in fine detail. Each individual criterion that bears upon the product’s
ability to satisfy a consumer has to be considered, as well as the totality of the features.
1. Physical properties
These are the tangible aspects of the product, represented by size, weight and
volume and by the components or ingredients. They are likely to be critical to the
appeal of the product (although not always to the immediate shelf appeal, in the case
of packaged goods) and will have a direct bearing on the consumer’s evaluation of
the product. Getting the physical property correct may require the help of a product
technologist, employed by the retailer or a supplier.
2. Packaging
For many products it is the packaging that initially attracts a potential
customer, and so the design of the package in which a product is enclosed is as
important as the formulation of the product within. Packaging performs a variety of
functions including aesthetic appeal to customers, protection of the product, and
added value for the customer
Increasingly, packaging must also conform to company environmental policy
and/or consumer expectations in the light of their personal environmental concerns. In
addition, the design of a pack can be influenced by logistical requirements for space
efficiency. For example, the boxes in which fruit juices are packaged have become
increasingly tall and slim, so that more ‘facings’ of product can be squeezed on to
shelves.
3. Style
Although difficult to define, the style of a product is generally dependent on the
blend of shapes, colours and materials and has more to do with aesthetics than
functionality in the product’s design.
4. Product Quality
Product quality is not just about performance. Customers are increasingly
concerned from a social and ethical stance about what goes into a product and how it
is made.
Factors Affecting Customer Store Choice
Why is store location such an important decision for a retailer? Jaravaza & Chitando
(2013) stated that the importance of store location to a retailer should not be
underestimated.
First, location is typically one of the most influential considerations when customers are
deciding which store they will choose. For instance, a working couple can easily decide to
buy at the shop nearest to the bus terminal on their way to work. Most consumers similarly
shop at the supermarket closest to them.
Second, location decisions have strategic importance because they can be used to
develop a sustainable competitive advantage. If a retailer has the best location, that is the
location that is most attractive to its customers, competitors are relegated to occupying the
second-best location.
In general, a good location may enable a retailer to succeed even if its strategy mix is
mediocre. On the other hand, a poor location can be a liability and even the most able
retailer maybe unable to overcome it. The selection of a store location generally requires
extensive decision making by the retailer because of the number of factors or criteria to be
considered. These include the size and characteristics of the surrounding population, the
availability of parking, and the attributes of nearby stores, property costs and the length of a
lease agreement as well as legal restrictions. A store location usually requires a sizable
financial investment and long term commitment by the retailer.
Store location has a strong impact on a retailer’s long run and short run planning. In the
long run, the choice of a location affects the firm’s overall strategy. The retailer needs to be
at a store site that will be consistent with is organizational mission, goals, and target market
overan extended period of time. In the short run, store location influences the specific
elements of a retail strategy mix.
Store choice decisions by customers are usually hinged on location convenience,
assortment, quality of merchandise, service, price, image, promotions as well as brand
image.
Their study concluded that of the factors which are considered most important by
customers are (by rank) travelling time, service quality, location convenience, ambience
conditions, price affordability, nearness to complimentary outlets, and store visibility.
This indicates that of seven factors that are important considerations when choosing a
shopping destination, four are store location characteristics namely, travelling time, location
convenience, nearness to complimentary outlets, and store visibility. The other three are
ambience conditions, prices, service quality. This trend shows the importance of store
location variables in selecting a shopping decision. As much as customers are interested in
prices, service quality and ambience conditions, they also take into consideration the
convenience offered by the location.
Shopping time has become a scarce resource to such an extent that customers prefer
shorter travelling distances to stores easily identifiable shopping outlets like corner locations
as well as convenience in terms of complimentary outlet existence.
Safety
People have a basic need for security, such as the need to feel safe and free from
harm (McCarthy, 2016).
A store’s location must not just be in a good spot for the customers, it must not be in a
spot where a high crime rate exists. According to Co (2017), a business’ location must not
be in a “bad” neighborhood. It can expose the store to a higher risk of crime such as theft
and robbery and can lose profit and customers.
According to Thomas-Fenner-Woods Agency Inc., the success of your retail store
requires a variety of crime prevention strategies. You can’t afford to lose inventory or
customers because your store is a popular target for thieves. Protect your store, employees
and inventory with these tips:
1. Analyze Your Problems - Every business faces different crime risks. Analyze your
property, employee training and community crime statistics as you determine
which crime prevention strategies you need.

2. Train Employees - Your employees are on the front line of crime prevention. They
should know basic emergency procedures and understand the importance of
greeting customers, maintaining eye contact, moving away from the cash register
whenever possible and confronting loiterers.
3. Make Friends With the Local Police - Law enforcement can partner with you to
prevent crime as they perform regular patrols near or in your business. They can
also train your staff how to notice details of crimes and respond to crime
emergencies and evaluate security weaknesses on your premises.
4. Clear the Clutter - An unobstructed view of your store’s entrance allows
employees to see who comes in and goes out. Clear the clutter from your store
aisles, too, to improve visibility at all times.
5. Use Natural Surveillance - Instead of covering your front windows, keep them
clear. This strategy allows passers-by and police to see inside your store and note
any suspicious activity.
6. Install Lighting - Indoor and outdoor lighting prevents crime. Remember to install
vandal-proof bulbs and power covers, too.
7. Control Access - Criminals are lazy and want to get in and out of a business
quickly. Consider the number of doors and their locations and material plus your
interior design as you seek to prevent crime. Install fencing or bushes by alleys,
too, as you limit a criminal’s escape route.
8. Limit Cash - By limiting the cash you have on hand, you can cut robberies by 80
percent. Empty the cash register often, use a drop box and post signs about
limited cash to deter robberies.

9. Prohibit Loitering - This strategy reduces the potential for robberies in your store.
10. Install Cameras - Improve your ability to catch criminals when you install
surveillance cameras. They can monitor the front door, cash register and other
high traffic areas.
11. Implement Security Strategies - Research shows that incarcerated robbers doubt
that victimized businesses install crime preventive measures. Prove them wrong
when you implement security strategies immediately.
12. Reevaluate Regularly - Crime statistics change regularly, and your crime
prevention strategies should too. At least once a year, evaluate your
neighborhood and threats as you continuously protect your business.
These steps will make customers feel safe and at ease while shopping. These cannot
fully prevent a crime happening, but it will surely reduce the risk of having a crime in the
store, thus preventing inventory and customer losses.
Needs and Wants
A company's location should match the market for its products or services, and
assembling a demographic profile tells an entrepreneur how well a particular site measures
up to his or her target market’s profile.
One of the intangibles that can be determined only by a visit to an area is the degree
of compatibility of a business has with the surrounding community. In other words, a small
company's image must fit in with the character of a town and the needs and wants of its
residents.
Customers’ needs, wants, and expectations are important in decision making. As
competition intensifies, so the range of offerings opens to customers increases. In addition,
their experiences with various offers can lead to increased expectations and requirements.
A major way of dealing with this type of changes is continuous improvement. Then new
customers are emerging as potentially more attractive targets. Segments that may be less
attractive at one point in time might become more attractive in the future as social, cultural
and economic change has affected living standards so has it affected the demand for goods
and services (Scarborough, 2014).
People will not focus on higher level needs until their basic needs have been fulfilled.
Human needs may be physical in nature such as the need for foods and water (McCarthy,
2016).
Demographics
According to Berman and Evans (2009), both groups of consumers and individual
consumers can be identified by such demographics as gender, age, population growth rate,
life expectancy, literacy, language spoken, household size, marital and family status,
income, retail sales, mobility, place of residence, occupation, education, and ethnic, racial
background. These factors affect people’s retail shopping and retailer actions.
Consumer lifestyles are based on social and psychological factors, and influenced by
demographics. As with demographics, a retailer should first have some knowledge of
consumer lifestyle concepts and then determine the lifestyle attributes of its own target
market.
A retailer can develop a lifestyle profile of its target market by answering these
questions and then use the answers in developing its strategy:
 Culture – What values, norms, and customs are most important to the
potential target market?
 Social Class – Are potential customers lower, middle, or upper class? Are they
socially mobile?
 Reference Groups – To whom do people look for purchasing advice? Does
this differ by good or service category? How can a firm target opinion leader?
 Family life cycle – In what stage(s) of the cycle are the bulks of potential
customers?
 Time Utilization – How do people spend time? How do they view their
shopping time?
 Personality – Do potential customers have identifiable personality traits?
 Class consciousness – Are potential consumers status-conscious? How does
this affect purchase?
 Attitudes – How dies the potential target market feel about the retailer and its
offerings in terms of specific strategy components?
 Perceived Risk – Do potential customers feel risk in connection with the
retailer? Which goods and services have the greatest perceived risk?
 Importance of the purchase – How important is the goods/services offered to
potential customers?
By analyzing population and other demographic data, entrepreneurs can examine a
city in detail, and the location decision becomes more than just an educated guess or worse,
a shot in the dark. Studying the trends and demographics of a city, including population size
and density, growth trends, family size, age breakdowns, education, income levels, job
category, gender or sex, religion, race, and nationality, gives entrepreneurs the facts they
need to make an informed location decision (Scarborough, 2014).
Gender Differences in Purchase Decision Making
In an article written by Aswegen (2015), she wrote that According to The
Mediterranean Journal of Sciences (2017), research shows that customers have a range of
underlying motivations triggering their shopping behaviors, but there are essentially two
types of shopping motives:
Utilitarian: The conscious pursuit of an intended consequence. Essentially, meaning
you’re shopping “to get something done”.
Hedonic: Related to intrinsic and emotional responses. In other words, you’re shopping
because you love it.
Men tend to follow a utilitarian, more logic-based approach. You need to tell them why
they should buy your products and why it makes sense for them to purchase it. Get to the
point quickly, focus on the products, and use active statements that demonstrate value.
Women are mostly hedonic shoppers. To reach and engage women, you will have to
create emotive shopping experiences that resonate with them. A purely functional approach
can fall flat pretty quickly. Women want to know more about you, your brand, the lifestyle
you sell and how your products are going to make them feel.
Younger Consumers Visit C-stores Most Frequently
According to CS News in 2015, when analyzing shopper preferences regarding
convenience stores, it's not just factors like income, region and gender that are strongly
influential. According to the exclusive Convenience Store News 2015 Realities of the Aisle
consumer research study, age also makes a significant difference in c-store shopping
habits.
Overall, today's consumers willingly embrace the convenience factor. While the very
youngest and oldest age groups surveyed visit c-stores with somewhat less frequency, a
majority of other consumers make a habit of stopping by. Those aged 25-34 are most likely
to visit a c-store several times a week (68.3 percent), followed by those aged 35-44 (65.4
percent) and 45-54 (60.6 percent).
More than a quarter of those aged 25-34 visit a c-store almost every day, while 34
percent of those aged 18-24 visit about once a week.
Younger consumers are the most location-loyal, with three-quarters of those aged 18-
24 indicating they typically visit the same c-store each time. The least loyal age group is 35-
44, yet a majority still visits the same store at 66.4 percent. Location of their chosen store is
a major consideration factor across all age groups.
Interestingly, all consumers are less likely to carry that loyalty through to a loyalty
program — but this is partially due to lack of availability. About a quarter of all age groups
are enrolled in their usual store's loyalty program if one is available, with those aged 25-34
reporting the highest rate of enrollment at 33.4 percent.
Consumers aged 18-24 are the most likely to say their store does not offer a loyalty
program and they would not enroll in such a program even if it existed (29.4 percent), while
nearly half of those aged 45-54 say they would enroll in a loyalty program if their store
offered it (49.1 percent).
Although a majority of all consumers do not use the extra services offered at c-stores,
age does make a difference in those who do.
ATM is the most popular service, with 47.4 percent of those aged 25-34 reporting they
use it, and 36 percent or more of most other age groups saying the same. Those aged 55-
plus are significantly less likely to use a c-store ATM, with only 19 percent doing so.
Overall, younger consumers aged 18-24 are the most likely to use some kind of extra
service, with only 35.1 percent saying they do not use any. Older consumers aged 55-plus
are the least likely to use extra services, with 67.1 percent saying they do not use any of the
listed options, followed by those aged 45-54 at 52.4 percent.

Breakdown of Students’ Allowance
Furthermore, according to Philstar’s 2014 report about breakdown of student’s
allowance, College school students typically get P150 to P250 (excluding transport
allowance) per day.
Students from exclusive schools like Ateneo and DLSU receive where surrounding
places to eat tend to be more expensive receive higher allowance. The allowance covers
P50 to P100 for lunch, P30 to P50 for merienda, P20 on average for photocopies, and P50
to P80 for school requirements like printing, buying pens, etc.Students outside of Manila,
especially those living in municipalities usually get about P100 to P150 per day (excluding
transport allowance). Transport allowance is easy to compute, however.
Convenience
On the other hand, retailers face numerous challenges. Many consumers are bored
with shopping or do not have much time for it. Some locales have too many stores, and
retailers often spur one another into frequent price-cutting.
Time and budget constrained consumers will spend less time shopping, make fewer
trips, visit fewer stores, and shop more purposefully. Different strokes will satisfy different
folks. Consumers will shop different formats for different needs. Consumers are looking at all
the ways they spend their time, including shopping, and demanding a more time-efficient,
time-conscious way to shop.
Retail shopping is often viewed as a chore: Consumers now attempt to limit the time
they spend shopping. Time-pressed by family and work-responsibilities, they spend fewer
hours cruising the store in search of the perfect item, and look to get what they need as
quickly as possible. There are ways for retailers to respond to the poverty-of-time concept.
Firms can add branch stores to limit customer travel time; be open longer hours; add on-
floor personnel; reduce checkout time (Evans & Berman, 2009).
The buyer spends little time planning the purchase or comparing available brands or
sellers. Even a buyer who prefers a specific brand will readily choose a substitute if the
preferred is not conveniently available (Ferrel, Niininen, Lukas, Schembri, & Pride, 2014)
Store Layout, Product Variety, and Affordability
Consider this “Consumers today spend proportionately less on basic necessities,
such as food, clothing, and shelter, than they did 25, 35, 50 years ago. But they spend more
on discretionary purchases that are motivated by emotion and desire.” but consumers just
not buy what they wanted. They are also becoming more skeptical about price.
To regain consumer confidence, pricing by retailers and manufacturers alike will
become clearer, more sensible, and more sophisticated. The retailer must consider not only
the merchandise characteristics of a customer offer but also the store environment (and its
location, size, etc.) and the service expectations of the customer. An understored trading are
has too few stores selling a specific good or service to satisfy the needs of its population. An
overstored trading area has so many stores selling a specific good or service that some
retailers cannot earn an adequate profit.
The general quality of the goods and services offering must be set. Decisions are
made to the width of assortment (the number of product categories carried) and the depth of
assortment (the variety of products carried in any category (Berman & Evans, 2019).
The store layout should therefore be designed to increase spending opportunities,
present purchase cues and shopping in the store easy and pleasant. The store environment
includes the amount of space employed, and the layout fittings, colors, aromas, sound and
density of customers present. Store features must create an atmosphere, modifying the
buyer’s knowledge and mood, thus affecting behavior. (East, Singh, & Vanhuele, 2017).
According to Varley (2014), the product range management discussed a number of
approaches that can be used to determine how products are placed into ranges which
includes:
 End use. A DIY superstore like B&Q, for example, has bathroom, kitchen and
garden sections, with products clustered into ‘projects’.
 Product features and technology. For example, an electrical retailer may have
ranges split according to the relevant technology, such as CD, minidisk and DVD.
 Price of the item. Variety stores may have a ‘budget range’ that is bought
separately from other ranges. Alternatively, a premium range of luxury foods in a
supermarket may be managed in its entirety by a team operating separately from the
other food categories.
 Brand. It may be more sensible, for example in a department store like Debenhams
which has over fifty own-brands alone, for ranges to be managed by brand rather
than by product category. In this way the identity of the brand (sometimes referred to
as its ‘handwriting’) remains strong, consistent and co-ordinated.
These methods of placement allow the customers to be aware of the variety that the
business offers and also gives the location of the products and/or services they need. The
“end use” placement addresses those who are looking based on functionality such for
cleaning, cooking, and gardening.
As for the product features and technology, products are group according to their
characteristics and similar attributes. Customers who want to look for wide choices of the
similar products will have better view and comparison of the products of his/her choice.
Placement can also be based on the price. This method is most effective for those
who have tight budget because it allows them to know where they can find cheaper goods
and not having to spend time looking and comparing prices from other products.
The last one is according to brand. This allows customers who prefer certain brands
to be able to identify their desired product more easily and more efficiently without looking all
throughout the store. This also allows them to be able to explore the wide selection of the
brand they patronize thus offering more products aside from what the intend to buy.
Pricing involves finding the amount of monetary sacrifice that best represent the value
customer perceive in a product after considering various marked constraints (Babin &
Zimund, 2016).
The retailer anticipates the want of the consumers and then supplies them the right
kind of goods at reasonable price (Pondicherry University, 2013). Customers consider the
use of the product they needed and wanted to afford, which is naturally their basic needs
that they need to fulfill and the product they wanted to have, but while considering its use,
they also consider the price that their budget can afford.
The price of the product they want highly affects their demand for it, when the price
covers a high percentage of their budget; it is most likely that the customer will hesitate to
buy the things they wanted. So as solution to this, retailers make the consumers buying
easy and convenient by considering the price which is acceptable for a certain product.
They first consider the location that they can save money investment while having a large
amount of possible customers, and then use this advantage to lower the prices of products
while taking many customers and recovering it through its income.
Consumers normally choose the product with the lowest price with the same quality
not considering the brand awareness. When choosing a product, consumers normally
choose the store which has the product they need or want as long as the store is acceptably
convenient for them to go. But when the store is not convenient to go to, they don’t normally
consider the store where there is a lower price but choose the store which is convenient for
them to go. With this, retailers don’t only consider the price of the product but also the
location to maximize income.
According to Mattsson (2009), it is very important that the correct price is charged for
a product. If the price is too high consumers will avoid the product, as they will believe it to
be too expensive yet if the product is priced too low they may believe that there is
something wrong with the product for it to be so cheat. Also, if the company charges too
low a price, it may not cover its costs.
After consumers have evaluated possible alternatives, by, for example, comparing the
performance of important attributes of competing service offerings; assessed the perceived
risk associated with each offering; and developed their desired, adequate, and predicted
service level expectations – they are ready to select the option they like best.
Many purchase decisions for frequently purchased services are quite simple and can
be made quickly, without too much thought--- the perceived risks are low, the alternatives
are clear, and, because they have been used before, their characteristics are easily
understood. If the consumer already has a favorite supplier, he or she will probably choose
it again in the absence of a compelling reason to do otherwise.
In many instances however, purchase decisions involve trade-offs. Price often is a
key factor. Once a decision is made, the consumer is ready to move to the service
encounter stage. This next step may take place immediately, as in deciding to enter a fast
food restaurant, or it may first involve an advance reservation, as usually happens with
taking a flight or attending a live theater performance. (Lovelock, & Wirtz, 2011).
Attracting and retaining customers can be a difficult task. Customers often face a
bewildering array of products and services from which to choose. A customer buy from the
firm that offers the highest customer perceived value – the customer’s evaluation of the
difference between all the benefits and all the costs of a marketing offer to those competing
offers (Mattsson, 2009).
Product Management
According to Varley (2014), products are central to most organizations whether they
are in the form of tangible goods or of services. Traditionally, retailers have been concerned
with the design and production of products. They also have had the task of gathering
together a relevant and inspiring selection of goods and making them available to
consumers at convenient locations and times.
Some business organizations engage in retailing, even though the majority of their
activity is concerned with some other enterprise, such as production or entertainment, and
some retailers do have their own factories.

However, if a business is to be classed as a retailer, its core activity, which accounts
for over half of its total revenue has to come from selling finished products or providing
personal services to the final consumer. And so the collection of products that they offer to
their customers determines the nature of the business and influences all other aspects of
their business strategy.
So in order to carry out the product management, retailers need to offer a range of
goods that satisfy the needs and wants of the customers who visit their store at the time
they enter. Retailers are in the best position to know what there is customers require
because they have direct contact with them in the store.
It is necessary that the product available when consumers want to purchase it then
the demand of the product is created and such goods are made available to the customer at
the time when they are needed or demanded. In this case, product management should be
implemented.
Customer Demand and Store Supply
According to Whalley (2010) retailers must make the product available when
consumers want to purchase it. After production of goods is stored, until such time, the
demand of the product is created and such goods are made available to the customer at the
time when they are needed or demanded.
Consumers have an unlimited amount of needs and wants. Whenever they needed or
wanted to buy a product, the product provider must have the supply of the goods sought by
the consumer. In this case, retailers consider providing a variety of product that a consumer
can choose from and managing their inventory properly. In addition, retailers display product
assortment in the store so when a customer enters a store, the product they needed can be
easily bought at the moment he enters the store.
With this, the demand for a product will be higher and then it is when an additional
supply for the product is needed. In this case, retailers consider buying additional supply of
that certain product in order to cooperate with the demand and to fulfill the satisfaction of
consumers.
Satisfaction
Most of the work on consumer satisfaction on quality is motivated by its effect on
loyalty. To become loyal when they have achieved, customers have to be satisfied with the
products and services they purchase and appreciate their quality.
If managers can increase product and service quality and customer satisfaction, a
number of beneficial effects may follow up. These are more customers, additional purchases
per customer and a higher profit margin.
A price allows a consumer to decide if it is better to buy here and now or to wait and
buy elsewhere. When a product is cheaper than expected, it is likely to be purchased. The
number of people who buy from a particular store depends upon nearby population
densities, transport access, store type, and the presence of competing retail locations (East,
Wright, & Vanhuele, 2017).
Customer Satisfaction is seen as a combination of service quality, product quality,
and price, in addition to the influences of situational and personal factors, while the
perception of service quality can be evaluated in the absence of the actual experience. This
is not possible with customer satisfaction.
Customer satisfaction can only be assessed after an experience with the service
provider. Because customers are more knowledgeable these days, they consistently tend to
seek out new services that will provide them with more satisfaction. As a result, service
providers are expected to increase the value of their service offerings to customers to stop
them from defecting to other organization.
Research on the impact of customer satisfaction on customer loyalty concluded that
customer satisfaction influences purchase intentions and post purchase attitudes.
Organizations must bear in mind that customer loyalty contributes an exceptionally high
portion of sales and profit growth within service organizations (3g Elearning, 2014).
From the customer’s perspective, value is the perception the shopper has of a value
chain. It is the customers’ view of all the benefits from a purchase. Value is based on the
perceived benefits received versus the price paid. It varies by type of shopper.
Price-oriented shoppers want low prices, service-oriented shoppers will pay a lot to
patronize prestigious stores. Customers must always believe they got their money’s worth.
Customer satisfaction occurs when the value and customer service provided through a
retailing experience meet or exceed consumer expectations.
If the expectations of value and customer service are not met, the consumer will be
dissatisfied. “Retail satisfaction consists of three categories: shopping systems satisfaction
which includes availability and types of outlets; buying systems satisfaction which includes
selection and actual purchasing of products; and consumer satisfaction derived from the use
of the product. Dissatisfaction with any of the three aspectscould lead to customer disloyalty,
decrease in sales, and erosion of the market share” (Berman & Evans, 2009).
Customer satisfaction is a pleasurable fulfilment response. Dissatisfaction is an
unpleasurable fulfilment response. The experience, or some part thereof ’component of the
definition suggests that the satisfaction evaluation can be directed at any or all elements of
the customer’s experience. This can include product, service, process and any other
components of the customer experience according to Buttle (2009).
It agreed that it is normal for people to have needs that are both partly satisfied and
at the same time unsatisfied and that a person‘s behavior is mostly motivated by the most
important needs at a given time (Blascova, & Grazulis, 2009).
In the developed world, more and more customers seem to want some degree of
choice and variety if not totally bespoke products or services (MacBeth, 2015).
In 2009, Mattsson stated that marketing-orientated companies attempt to create
customer value in order to attract and retain customers. Their aim is to deliver superior value
to their target customers. In doing so, they implement the marketing concept by meeting and
exceeding customer needs better than the competition.
Customer satisfaction is a measure of how an organization’s total product performs in
relation total product performs in relation to set of customer’s expectations. Customer
satisfaction depends on the product’s perceived performance relative to a buyer’s
expectations.
If the product’s performance falls short of expectations, the customer is dissatisfied. If
the performance matches expectations, the customer is satisfied. If performance exceeds
expectations, the customer is highly satisfied and delighted. Exceeding the value offered by
competitors is the key to marketing success. Consumers decide upon purchases on the
judgements about the values offered by suppliers.
Once the product is bought, customer satisfaction depends upon its perceived
performance compared to the buyer’s expectations. Customer satisfaction occurs when
perceived performance matches or exceeds expectations. Expectations are formed through
post-buying, experiences, and discussions with other people, and suppliers marketing
activities.
Human wants are unlimited, insatiable, and innumerable. They are infinite and may
only be limited by people’s imagination. People are never satisfied. Wants arise one after
another. Customers are not necessarily motivated to buy a product simply because the
products meet their basic needs. There must be customer satisfaction and consistent
repeat purchases. The concept of continuity marketing reflects customer, loyalty, a reliable
way of evaluating customer’s satisfaction. So in order to satisfy consumers, marketers must
convert needs and wants into product or service features that provide benefits sought by
their consumers. After the needs are satisfied, the challenge is in the satisfaction of want
and expectations, which are the motivating factors for consumers to purchase (Payumo,
Ronan, & Maniego, 2014).
Customer Expectations and Intention
Customer Expectations is an important factor of decision making. It highly affects
store location, pricing, products, and several aspects involving a store. A market has a wide
range of offers that a consumer may choose. In this case, consumers are affected by their
expectations.
They normally choose those which are attractive in terms of price and convenience.
Segments that may be less attractive at one point in time might become more attractive in
future as social, cultural and economic change has affected living standards so has it
affected the demand for goods and services (Scarborough, 2014).
Customer expects that they can fulfill their needs and wants in an affordable price
with their expected use of the product they afford. It affects the retailers in a way they
consider these expectations in choosing store location, pricing of products, and product
quality. When the consumers expects to fulfill their needs with affordable price with
convenience, retailers needed to choose a location where they can reduce the cost of store
investment and lower the price acceptable for a product to attract customers to choose the
product they offer. They also have to continuously improve the products in which in a way it
will become more attractive to customers and will fulfill their desire.
Research on the impact of customer satisfaction on customer loyalty concluded that
customer satisfaction is influenced by purchase intentions and post purchase attitudes (3g
Elearning, 2014). Normally the customer’s intention of going to store is to purchase products
and services they needed in their daily lives. These include physical things such as foods
and water which is needed in order to survive. Also, customers need utilities such as
electricity and water in order to support their daily lives. In addition, some other intentions
include things and services to fulfill their wants. Once their primary intention is achieved
which is fulfilling their needs, they proceed to fulfill their wants. In this case, retailers must
keep in mind that in order for them to retain their customer’s loyalty to them, they needed to
fulfill the consumer’s intention and expectations that leads to customer satisfaction and high
portion of sales and profit growth.

Synthesis of the Reviewed Literature and Studies
The researches view the related literatures and studies being an essential part of the
research study. With the concepts, principles, theories, and generalizations embodied in
these materials, subtleties are uncovered and the previously gray areas with regard to the
work became clear-cut. The review of the related literatures and studies enriched the
present study in depth.
The research materials gathered gave the researchers a clear gasp and better
understanding of the said topic and provided a firm basis as to how the questionnaire is to
be prepared and administered. Accordingly, through review made by the researchers, they
were able to select the method to be utilized, the ideal research setting or venues. The
information cited on the given research would likewise be utilized in the formulation of
conclusions and recommendations to be included in the thesis paper.
Expansion of convenience store in rural areas is the new strategic goal of the retail
industry. This expansion will not be simple and quick. This will take time and planning to be
successful. First, the retailers first need to determine the optimal location of a new
convenience store. This decision is considered to be one of the most important elements in
retail marketing strategy, because it is a long-term decision, associated with long-term
capital commitment. Location decisions are very complex, due to the large number of
factors thathave to be considered, but once a retail site has been chosen, and it is a right
one. It will reap benefits to the business.
Next will be the demographics of the people around the area. The business must
identify individual consumers as there are different factors that will affect people’s retail
shopping, actions, and habits. Consumer lifestyles are based on social and psychological
factors, and influenced by demographics. A retailer should first have some knowledge of
consumer lifestyle concepts and then determine the type of market the retailer will take.
As time became an essential thing in this age, many people became busy and
budgets their time. Retailers must make the store to be convenient. The store must have
optimized layout and with good customer service to fasten and lessen the effort and time
the customer will take finding, and purchasing the goods.
Being convenient will not be the last thing a retailer must do. The store must expand
its products and services so that customers will have choices in which it will attract more
customers as they find the product they want. But, the store must maintain the product’s
affordability or else the customers will find other store elsewhere.
After obtaining a product, the customer will evaluate it if there are any benefits in
buying the product. This will lead to the customer satisfaction, when the value and
customer service provided through a retailing experience meet or exceed consumer
expectations. Customer satisfaction is a pleasurable fulfillment response. The experience
or some part thereof ’component of the definition suggests that the satisfaction evaluation
can be directed at any or all elements of the customer’s experience. This can include
product, service, process and any other components of the customer experience.
In conclusion, the expansions of convenience store brought better accessibility of its
products to the rural areas. Better convenience, as the store is nearby to the barangays, it
will relieve them of exerting more effort to find the product they need / want in other areas.
And as they obtain the product/service they need. It may lead them to sense of satisfaction,
if the product/services exceeded their expectations.

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 16

when eating or drinking snacks and soft-drinks.

sari heartland – the local village.

locations this 2018, mostly in Region 2 and in Eastern Visayas.

branded it as All Day Convenience Store.

stores, and is set to enter regions outside of Manila.

in the Philippines by 2020.

traditional convenience stores.

wait, that most of traditional stores had none.

General Services of a Retailer

According to Pondicherry University (2013) the general services which a retailer

as easy and convenient as possible i.e. he acts a consumers’ agent.

3. He offers a large assortment of merchandise, of suitable size, color, design, style

and seasonal items-ranging from domestic utensils, household requisites to

when needed by the consumer.

5. He also assumes risk by guaranteeing the goods he sells to the consumer.

and long term installment programs.

7. He adds to the convenience and ease of consumer purchasing by offering

convenient shopping locations, market information, and other services such as

may be offered and found sufficiently desired to result in increased patronage.

8. He helps the producers in distributing their products by using advertisement

display and personal selling.

components also increase, as does employment and thus increasing purchasing

power. But when sales go down, manufacturers cut back production,

unemployment increases and retail sales also goes down.

Benefits of Organized Retail

Retailing activity can also be viewed as a significant contributor to the economy in

all the players.

and consumer. Therefore, benefits due to organized retailing can be includes:

1. Better prices to producers as intermediaries are eliminated from the process.

3. Creation of better infrastructure leading to better storage and display of products,

enhancing consumer’s experience.

opportunities of newer kind.

are paid across the chain with fewer avenues of avoidance.

Challenges to Organized Retail

retailers is the competition from the unorganized sector of retailers.

the choice of customers.

much larger expenses than the unorganized sector.

personals and skill improvements of the existing personals.

framework to ensure its sustained growth (Cant, 2010).

Importance of Location to Retail Companies

Retail location is considered to be one of the most important elements in retail

marketing strategy, because it is a long-term decision, associated with long-term capital

“unique” and thus cannot be imitated by competitors.

altered if the environment (e.g. consumer behavior, competition) changes.

is associated with specific advantages and disadvantages according to restrictions placed

occupancy costs, pedestrian or vehicle customer traffic.

1. Solitary Sites (Free-Standing Sites, Isolated Sites)

other retailer or shopping centers.

2. Unplanned Shopping Areas

unplanned shopping areas are central business districts, neighborhood districts,

and strip or string locations.

3. Planned Shopping Districts

number of smaller retailers to add diversity and special interest.

strategy. It is an integral part of the retail location decision process.

new retail outlet.

This step concludes with a final decision as to the specific site.

shop occasionally at a location as an alternative to local shopping.

formats, merchandise, pricing strategy, etc.) and it is influenced by a substantial number of

factors that need to be investigated. A selection of location factors is presented in Table 1.

assess the sites.

Selected Location Factors

 Numbers by  Site visibility  Existing retail  Purchase