10-1 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Site Selection RETAIL MANAGEMENT: A STRATEGIC APPROACH 11th Edition BERMAN EVANS 1

10-2 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter Objectives  To thoroughly examine the types of locations available to a retailer: isolated stores, unplanned business districts, and planned shopping centers  To note the decisions necessary in choosing a general retail location  To describe the concept of one-hundred percent location 2

10-3 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter Objectives (cont.)  To discuss several criteria for evaluating general retail locations and the specific sites within them  To contrast alternative terms of occupancy 3

10-4 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Overview  Step 1: investigate alternative trading areas (Chapter 9)  Step 2: determine what type of location is desirable  Step 3: select the general location  Step 4: evaluate alternative specific store sites Chapter 10 discusses steps

10-5 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Three Types of Locations Isolated Store Planned Shopping Center Unplanned Business District 5

10-6 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Isolated Stores Advantages * No competition * Low rental costs * Flexibility * Good for convenience stores * Better visibility * Adaptable facilities * Easy parkingDisadvantages * Difficulty attracting customers * Travel distance * Lack of variety for customers * High advertising expenses * No cost sharing * Restrictive zoning laws 6

10-7 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Examples of Isolated Stores Large-store formats Wal-Mart Costco Convenience stores 7-Eleven

10-8 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 10-1: Site Selection and Starbucks 8

10-9 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Unplanned Business Districts Central Business District Secondary Business District Neighborhood Business District String 9

10-10 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 10-2: A Revitalized Central Business District

10-11 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 10-3: Unplanned Business Districts and Isolated Locations

10-12 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Planned Shopping Centers Advantages * Well-rounded assortments * Strong suburban population * One-stop, family shopping * Cost sharing * Transportation access * Pedestrian trafficDisadvantages * Limited flexibility * Higher rent * Restricted offerings * Competition * Requirements for association memberships * Too many malls * Domination by anchor stores

10-13 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 10-4: Macy’s and Shopping Centers

10-14 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Table 10-1a: Characteristics of Centers

10-15 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Table 10-1b: Characteristics of Centers

10-16 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Table 10-1c: Characteristics of Centers

10-17 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 10-5: Festival Walk, Hong Kong

10-18 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Location and Site Evaluation One-Hundred Percent Location The optimum site for a particular store

10-19 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 10-7: Location/Site Evaluation Checklist

10-20 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Pedestrian Traffic  The most crucial measures of a location/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

10-21 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Vehicular Traffic Important for  convenience stores  outlets in regional shopping centers  car washes  suburban areas with limited pedestrian traffic

10-22 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Parking Considerations  Number and quality of spots  Distance of spots from stores  Availability of employee parking  Price to charge customers for parking

10-23 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall How Many Parking Spaces? Shopping centers = 4-5 spaces per 1000 square feet of gross floor space Supermarkets = spaces per 1000 square feet of gross floor space Furniture stores = 3-4 spaces per 1000 square feet of gross floor space

10-24 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 10-8: Corner Influence and Hershey’s

10-25 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Terms of Occupancy Considerations Ownership versus leasing Type of lease Operations and maintenance costs Taxes Zoning restrictions Voluntary regulations

10-26 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Types of Leases Percentage Straight Maintenance- Increase Recoupment GraduatedNet

10-27 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.