STORE LOCATION

BY:
Ms. Diksha Khera
Assistant Professor
 STORE LOCATION
The retail sector in India is having phenomenal growth. It
is said that any products or services organization is present
in the market for sales. Even though the company
produces very good products, it needs to focus on the sales
because the other functions are meaningless if it cant sell
its products or services. Once a location is chosen, a
retailer must live with it for many years.
IMPORTANCE OF RETAIL LOCATION
 Location if perfect can act as the most important differentiating factor and
can lead to gaining advantage over the competitors.
 Location is one such factor which if once chosen, and the investment is
made to customize it as per the requirements of the display of products,
cannot be easily changed to other place; unlike other factors such as
product mix, manpower etc. because of huge financial investments made
on the purchase of the land or in the long term contracts with the owner of
the store.
 Selecting a particular location depends on the transportation facilities
available in the area
 Location also depends on the area where the required manpower is easily
available or not
 Whether the required/ forecasted sales can be met in the particular
location.
LOCATION OPPORTUNITIES AND SITE
SELECTION
Deciding a particular location for a retail store involves
very complex decision making because once chosen, it
is not at all flexible to relocate frequently. All the
future strategies related to advertising, promotion,
transportation etc. are related to location.
Three main spatial patterns have emerged which
describe most cases of retail location. These are :
1. Central Place theory
2. Bid Rent Theory
3. The Principle of Minimum Differentiation
LEVELS OF LOCATION DECISION
Selection of City
( Size of trading area, Population, trends, Cost, Trade
Potential etc.)
 Area within City
( Popularity of area, Access Routes, Cost, Nature of
Competition etc.)
Specific Site
( Nature of adjacent stores, Cost, Storage facilities,
Expansion possibility etc.)
FACTORS AFFECTING SITE SELECTION
1. Type of Goods
 Convenience Goods
 Shopping Goods
 Speciality Goods
2. Population
3. Easy accessibility
4. Legal and future considerations
5. Competition and Saturation
6. Location Cost
7. Parking Facilities
8. Owner’s terms of Occupancy
9. Multiple locations of the same retail chain
10. Types of Lease
11. Conditions of the surroundings
12. Other Personal Factors