Retail Locations By Megan and Chris

Types of Retail Locations There are two main types of locations: Unplanned locations Planned locations

Unplanned Locations There are three types of unplanned retail locations: Freestanding Sites Freestanding sites are locations for an individual, isolated store unconnected to other stores; however they might be near other freestanding stores or near a shopping center.

Urban Locations Urban areas in large cities offer three types of locations: the central business district, inner city, and gentrified residential sites. Central Business District The central business district is the traditional downtown financial and business area in a city or town.

Inner City The inner city is a low-income residential area within a large city, crime makes living in the inner city dangerous. Gentrified Residential Areas Many inner city areas are going through a process of gentrification – the renewal and rebuilding of offices, housing, and retailers in deteriorating areas.

Main Street Main street refers to the traditional downtown shopping area in smaller towns and secondary shopping areas in large cities and their suburbs.

Shopping Centers and Planned Retail Locations A shopping center is a group of retail and other commercial establishments that are planned, developed, owned, and managed as a single property.

Convenience, Neighborhood, and Community Shopping Centers Convenience, neighborhood, and community shopping centers are attached rows of open-air stores, with onsite parking. The most common layouts are linear, U-shaped, and L- shaped.

Power Centers Power centers are shopping centers that consist primarily of collections of big-box retail stores, such as full- line discount stores (Target), off- price stores (Marshalls), warehouse clubs (Costco), and category specialists (Lowe’s, Staples, Michaels, Barnes & Noble, Best Buy, Sports Authority, and Toys “R” Us).

Enclosed Shopping Malls Shopping malls are enclosed, climate-controlled, lighted shopping centers with retail stores on one or both sides of an enclosed walkway. Parking is usually provided around the perimeter of the mall. Shopping malls are classified a either a regional mall (less than 800,000 square feet) or a super-regional mall (more than 800,000 square feet).

Lifestyle Centers Lifestyle centers are shopping centers that have an open-air configuration of specialty stores, entertainment, and restaurants, with design ambience and amenities such as fountains and street furniture..

Mixed-Use Developments Mixed-use developments combine several different uses into one complex including retail, office, residential, hotel, recreation, or other functions

Outlet Centers Outlet centers are shopping centers that contain mostly manufacturer’s and retailer’s outlet stores.

Theme/Festival Centers In theme/festival centers, a unifying theme generally is reflected in each individual store, both in their architecture and the merchandise they sell.

Larger, Multiformat Developments – Omnicenters New shopping center developments are combining enclosed malls, lifestyle centers, and power centers referred to as omnicenters

Nontraditional Locations Pop-up stores, stores within a store, kiosks, and airports are other location alternatives for many retailers. Pop-Up Stores and Other Temporary Location Pop-up stores are stores in temporary locations that focus on new products or a limited group of products.

Store-within-a-Store Store-within-a-store locations involve an agreement in which a retailer rents a part of the retail space in a store operated by another independent retailer.

Merchandise Kiosks Merchandise kiosks are small selling spaces, typically located in the walkways of enclosed malls, airports, college campuses, or office building lobbies.

Airports A. high-pedestrian area that has become popular with national retail chains is airports.

Location and Retail Strategy The selection of a location type reinforces the retailer’s strategy. The location-type decision is consistent with the shopping behavior and size of the target market and the retailers positioning. Shopping Behavior of Consumers in Retailer’s Target Market A critical factor affecting the type of location that consumers select to visit is the shopping situation in which they are involved. Three types of shopping situations are convenience shopping, comparison shopping, and specialty shopping.

Convenience Shopping When consumers are engaged in convenience shopping situations, they are primarily concerned with minimizing their effort to get the product or service they want.

Comparison Shopping Consumers involved in comparison shopping situations are more involved in the purchase decision.

Specialty Shopping When consumers go specialty shopping they know what they want and will not accept a substitute.

Density of Target Market Another important factor that affects the retailer’s choice of location type is the density of the retailer’s target market in relation to the location.

C. Uniqueness of Retail Offering Convenience of their locations is more important for retailers with similar offerings than it is for specialty retailers

VI Societal and Legal Considerations Urban Sprawl Urban sprawl is the increased expansion of residential and shopping center development in suburban and rural areas outside of their respective urban centers. Societal and legal considerations often restrict where retailers can locate and operate their stores.

Opposition to Big-Box Retailers Retailers that operate big-box stores like Walmart, Target, Costco, and Home Depot often meet with a great deal of resistance when they plan to build a store in a community.

Zoning Local governments is the United States use zoning to regulate land uses in specific areas to prevent any interference with existing uses by residents or businesses, as well as encourage the preservation of a communities sense of identity

Building Codes Building codes are legal restrictions that specify the type of building, signs, size and type of parking lot, and so forth, that can be used at a particular location.

Signs Restrictions on the use of signs can affect a particular sites desirability. Sign sizes and styles may be restricted by building codes, zoning ordinances, or even the shopping center management.

Licensing Requirements Licensing requirements may vary in different parts of a region.