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Importance of location decision
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Most crucial element of Retail Mix Location is a major cost factor because it : i. involves large capital investment ii. affects transportation costs iii. affects human resources cost Location is a major revenue factor because it : i. affects the amount of customer traffic ii. affects the volume of business

selection of an area or type of location within a city .selection of a city .identification of a specific site .Levels of location decision and its determining factors  A retailer takes a location decision based on: .

Selection of city        Size of city’s trading area Population and growth trends Purchasing power and its distribution Trade potential Number. size & quality of competition Development cost Operating costs  Number of stores in an area .

Types of retail location Types of locations Types of Free standing locations  neighborhood stores  highway stores Unplanned business districts/ centers  downtown or central business district  secondary business district  suburban business district  strip centre Planned shopping centers  regional shopping centers of malls  neighborhood / community  specialist markets  periodic/ weekly markets .

alternatives     Occupancy cost of location Qualitative and quantitative nature of competition Availability of access routes.Area within the city or location  Catchment or trading area Primary-50-70%  Secondary 20-30%  Tertiary  Merchandise assortment. traffic .

   Nature of Zoning regulation Restrictions placed on store operations by property managers Index of retail saturation .

based on the number of customers in a given geographic location. . Retail catchment area is the sphere of influence around a retail attraction from which the retailer is likely to draw customer.  A customer spot map is an accumulation of dots placed on a map of the catchment area.

Site selection  Traffic flow and accessibility Vehicular traffic  Ease of vehicular access  Access to major highways  Street congestion  Pedestrian traffic  Availability of mass transit  Ability of site to intercept traffic  .

 Site characteristics Parking spaces  Access to store entrance and exit  Visibility of store from street  Access for deliveries  Size and shape of store  Condition of building  Adjacent retailers  .

 Costs Rental fee  Common area maintenance cost  Local taxes  Advertising and promotion fees  Length of lease   Restrictions Zoning  Signage  Restrictions on tenant mix  Safety code restrictions  .

Site selection analysis •        Six factors to be considered while selecting a site: kinds of products sold cost factor competitor’s location ease of traffic flow and accessibility parking and major thoroughfares market trends visibility .


Objectives of store design     Implement retailers strategy Build loyalty Increase sales on visits Control costs .

Store design elements    Layout Signage Feature areas .

Store layout  Grid layout    Utilitarian benefits-locate product easily Cost efficient.more merchandise. low cost standardised fixtures Limitation-low visibility Facilitates exposure to more merchandise Wider aisles for convenience Assymetric pattern Relaxing environment  Racetrack    Free form   .

Signage and graphics   Help in locating products. provide information and reinforce store’s image Types of signages Category signage  Promotional signage  Point of sale signage  Digital signages  .

 Feature areas Windows  Entrances  Freestanding displays  End caps  Promotional aisles/area  Walls  Dressing rooms  POP counters/checkout areas  .

Space management  Space allocation for categories and brands depends on Space productivity  Inventory turnover  Display needs of merchandise   Location of merchandise category Impulse merchandise  Demand merchandise  Special merchandise  Complementary categories  .

Visual merchandising    VM is the presentation of a store and its merchandise in a way that will attract attention of customers Fixtures Presentation techniques Idea oriented  Item and size  Color  Price lining  Tonnage merchandising  .

an assortment of items that customer see as substitutes for one another Category management .Merchandising decisions    Merchandise management is the process by which a retailer attempts to offer the right quantity of right merchandise in right place at right time and meet company’s financial goals Merchandise category.

Merchandise planning process        Forecast category sales Develop assortment plan Determine appropriate inventory level and product availability Develop a plan for managing inventory Allocate merchandise for stores Buy merchandise Monitor and evaluate performance and make adjustments .

Types of planning processes   Staple / basic merchandise Fashion /seasonal merchandise .

Customer service  Customer service is the set of activities and programs undertaken by retailers to make the shopping experience more rewarding .

Services offered          Accepting credit cards Alterations Child care facilities Delivery Demonstration and display Trial rooms Extended store hours Easy returns Facilities for shoppers with special needs .

       Gift wrapping Customisation Information about availabilty of products Parking Repair Shopping carts Valet parking .