Chapter 10:

Site Selection
Introduction In recent years, shopping
centers have faced intense
competition from big-box
stores in isolated or strip
locations, outlet shopping
areas, and online retailers
—including those with
traditional store locales.
As a result, more shopping-
center operators are
utilizing social media to
lure and retain customers.
Types of Location
The Isolated Store
The Isolated Store
Freestanding retail outlet located on either a highway
or a street. There are no adjacent retailers with which
this type of store shares traffic.

Some advantages of this type of

retail location are many: There is no competition in
close proximity. Rental costs are relatively low.

Some disadvantages of this type of

retail location are: 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. Advertising
expenses may be high.
 The Unplanned
Business District
 The Unplanned Business District
Two or more stores situate together (or in close
proximity) in such a way that the total arrangement or
mix of stores is not due to prior long-range planning.
Stores locate based on what is best for them, not the
district. For example, four shoe stores may exist in an
area with no pharmacy
Central Business District (CBD)
-the hub of retailing in a city. It is
synonymous with the term downtown.
The CBD exists where there is the
greatest density of office buildings
and stores. Both vehicular and
pedestrian traffic are very high. The
core of a CBD is often no more than a
square mile, with cultural and
entertainment facilities surrounding it.
Shoppers are drawn from the whole
urban area and include all ethnic
groups and all classes of people.
 Example
A good example of the value
of a revitalized CBD is
Philadelphia, where there has
been a strong long-term effort
under way to make the central
city more competitive with
suburban shopping centers.
Secondary Business District (SBD)
an unplanned shopping area in a city or town that is usually
bounded by the intersection of two major streets. Cities—
particularly larger ones—often have multiple SBDs, each with
at least a junior department store (a branch of a traditional
department store or a full-line discount store) and/or some
larger specialty stores, besides many smaller stores. This
format is now more important because cities have “sprawled”
over larger geographic areas.
Neighborhood Business District (NBD)
is an unplanned shopping area that appeals
to the convenience shopping and service
needs of a single residential area. An NBD
contains several small stores, such as a dry
cleaner, a stationery store, a barber shop
and/or a beauty salon, a liquor store, and a
restaurant.
 The Planned
Shopping Center
The Planned Shopping Center
A planned shopping center consists of
a group of architecturally unified
commercial establishments on a site
that is centrally owned or managed,
designed and operated as a unit,
based on balanced tenancy, and
accompanied by parking facilities. Its
location, size, and mix of stores are
related to the trading area served.
 Regional Shopping Center
A regional shopping center is a large, planned shopping
facility appealing to a geographically dispersed market. It
has at least one or two department stores (each with at least
100,000 square feet) and 40 to 125 or more smaller retailers.
A regional center offers a very broad and deep assortment of
shopping-oriented goods and services intended to enhance
the consumer’s visit.
Community Shopping Center
A community shopping center is a moderate-
sized, planned shopping facility with a
branch department store (traditional or
discount) and/or a category killer store, as
well as several smaller stores (similar to
those in a neighborhood center). It offers a
moderate assortment of shopping- and
convenience-oriented goods and services to
consumers from one or more nearby, well-
populated, residential areas.
 Neighborhood Shopping Center
A neighborhood shopping center is a planned shopping
facility, with the largest store being a supermarket or a
drugstore. Other retailers often include a bakery,
laundry, dry cleaner, stationery store, barbershop or
beauty parlor, hardware store, restaurant, liquor store,
and gas station. This center focuses on convenience-
oriented goods and services for people living or working
nearby.
LOCATION AND SITE EVALUATION
1. Pedestrian Traffic - Number and type of people
passing by.
2. Vehicular Traffic - Customers who drive there.
3. Parking Facilities - Parking spots.
4. Transportation - Mass transit, access from major
highways, and ease of deliveries.
5. Store Composition - Number and size of stores.
6. Specific Site - Visibility
7. Terms of Occupancy
a. OWNERSHIP VERSUS LEASING - A retailer with
adequate funding can either own or lease premises.
b. TYPES OF LEASES
i. straight lease - fixed
ii. percentage lease - related to sales or profits.
iii. graduated lease - precise rent increases over a
stated period of time
iv. maintenance-increase-recoupment lease -
allowing increas if owner's expenses rise
v. net lease
c. OTHER CONSIDERATIONS - costs of operations and
maintenance.
Thank
you