1. Chapter 10 Site Selection

2. Chapter Objectives  To examine overall location strategies  To elaborate the types of locations available to a retailer: isolated store, unplanned business district, and planned shopping center  To note the decisions necessary in choosing a general retail location  To discuss several criteria for evaluating general retail locations and the specific sites within them  To contrast alternative terms of occupancy

3. Location, Criteria to consider include: Criteria to consider include: population size and traits population size and traits competition competition transportation access transportation access parking availability parking availability nature of nearby stores nature of nearby stores property costs property costs length of agreement length of agreement legal restrictions legal restrictions Location, Location

4. Choosing a Store Location Chapters 9 and 10 Step 1: Evaluate alternate trading areas in terms of residents and existing retailers -Chapter 9 Step 2: Determine location strategy (e.g., multi vs single, freestanding vs mall) -Chapter 10 Step 3: Select the location type -Chapter 10 Step 4: Analyze alternate sites contained in the specific retail location type -Chapter 10

5. Step 2: Determine location strategy (e.g., multi vs single, freestanding vs mall) -Chapter 10 Multi-store deployment Geographic Concentration (Efficiency) Market Saturation (Sales Maximization) Second-Use and Secondary Locations (Economy) Smaller Cities and Towns (Competition Minimization) Freestanding vs. Shopping Center Advantages vs. Disadvantages

6. Three Types of Locations Isolated Store Planned Shopping Center Unplanned Business District Step 3: Select the location type -Chapter 10

7. Isolated Stores Advantages Advantages No competition No competition Low rental costs Low rental costs Flexibility Flexibility Good for convenience stores Good for convenience stores Better visibility Better visibility Adaptable facilities Adaptable facilities Easy parking Easy parking Disadvantages * Difficulty attracting customers * Travel distance * Lack of variety for customers * High advertising expenses * No cost sharing * Restrictive zoning laws Large-store formats Large-store formats Wal-Mart Wal-Mart Costco Costco Convenience stores Convenience stores 7-Eleven 7-Eleven

8. Unplanned Business Districts Central Business District Secondary Business District Neighborhood Business District String Figure 10- 3 Figure 10-2

9. Planned Shopping Centers Advantages Well-rounded assortments Well-rounded assortments Strong suburban population Strong suburban population One-stop, family shopping One-stop, family shopping Cost sharing Cost sharing Transportation access Transportation access Pedestrian traffic Pedestrian trafficDisadvantages * Limited flexibility * Higher rent * Restricted offerings * Competition * Requirements for association memberships * Too many malls * Domination by anchor stores See Characteristics of Planned Centers, Table 10-1 Tehran, Iran Milan, Italy Cape Town, South Africa

10. Step 4: Analyze alternate sites contained in the specific retail location type -Chapter 10 Figure 10-7: Location/Site Evaluation Checklist

11. Pedestrian Traffic The most crucial measures of a location’s and site’s value are the number and type of people passing by- Proper pedestrian traffic count should include age and gender (exclude very young children) count by time of day pedestrian interviews spot analysis of shopping trips Vehicular Traffic Important for convenience stores outlets in regional shopping centers car washes suburban areas with limited pedestrian traffic Parking Considerations Number and quality of spots Distance of spots from stores Availability of employee parking Price to charge customers for parking Accessibility of parking lot How Many Parking Spaces? Shopping centers = 4-5 spaces per 1000 square feet of gross floor space Supermarkets = 10-15 spaces per 1000 square feet of gross floor space Furniture stores = 3-4 spaces per 1000 square feet of gross floor space Transportation Delivery Access - Delivery Access - Mass Transit Availability Store/Area Composition Specific Site Factors -Age and condition of building -Expansion Possibilities -Visibility

12. Terms of Occupancy Considerations Ownership versus LeasingZoning Restrictions Type of LeaseVoluntary Restrictions Operations & Maintenance CostsTaxes Types of Leases Straight Percentage Graduated Maintenance- Increase Recoupment Net Chapter 10 Discussion Questions: 6, 8, 9, 10, 12