4.site+selection iipm
TRANSCRIPT
8/8/2019 4.Site+Selection IIPM
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4. SITE SELECTION
1. Types of Location
2. Choice of a General Location
3. Location and Site Evaluation4. Terms of Occupancy
5. Overall Rating
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Types of Locations
Isolated Store
Unplanned Business District ± Central Business Dist
± Secondary Business Dist ± Neighbourhood Business Dist
± String
Planned Shopping Center
Regional Shopping Center Community Shopping Center
Neighbourhood Shopping Center
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ISOLATED STORE
Freestanding retail outlet located on either on a highway or a street
Off shoot of resentment from traditional retailers not to allow discountersto spread
Strengths:
No competition, low rental costs, no group rules, larger space, location by
choice, better road and traffic visibility, customized setting, easy parkingetc.
Weaknesses:
Difficult to attract initial customers, may not travel far on continuousbasis, variety missing in shopping, high advertisement costs
Operating costs ± lighting, security, maintenance of grounds and trashcollection cannot be shared
Access to desirable locations restricted due to community zoning laws Store has to be built rather than rented
Unplanned districts have edge over this format in terms of volume of sales
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Unplanned Business District
(U
BD) Retail location with two or more outlets in
close proximity to each other
Evolved in a gradual and piecemealpattern
Formed by conversion of existing buildings
for retail use and shared among a number
of companies and owners
No long range planning and mix of stores
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UBD- Central Business Dist
One of the unplanned site formats
Catching up in planned manner in out-of-town developments
No. of retailers coexist with an oversupply of retail businesses
No quotas on the number of types of retailers
Strengths:
Variety of retail choice in a single area Comparative prices, higher pedestrian traffic
Access to public transportation
Savings in time by utilizing different stores
Weaknesses:
Traffic congestion and parking problems
Problems of organizing deliveries High rents and taxes
Poor condition of properties in older city centres
Problem of recruiting and retaining the staff
Travel is expensive to the Centre
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UBD ± SECONDARY BUSINESS
DISTRICT Unplanned shopping area
Bounded by intersection of two major streets / cities
Location gaining importance due to growth of cities
Strengths:
Compared with CBD, the weaknesses are relatively low
Weaknesses:
Discontinuity in offerings
High rent and taxes (not as high as CBD) Traffic and delivery-congestion
Aging facilities, parking difficulties
Fewer outlets than in CBD
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UBD-NEIGHBOURHOOD
BU
SINESS DISTRICT Unplanned shopping area catering to a single residential area
Contains several small stores ± dry cleaner, stationery store, barber shop, beauty salon, liquor store, restaurant.
Leading retailer would be a supermarket/ a large drug store/ arestaurant
Situated in major streets of residential area
Strengths:
Offers a good location, long store hours
Good parking and a less hectic atmosphere than CBD or SBD
Weaknesses:
Limited selection of goods and services
Prices are higher
Less competition than in a CBD or SBD
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UBD-STRING
Comprises a group of retail stores with compatible product lines
Located along a street or highway
Car dealers, antique stores, clothing stores are good examples of strings
Strengths
Has advantages of an isolated stores
Lower rent, more flexibility, better road visibility and parking andlower operating costs
Weaknesses: Limited product variety
Increased travel for many consumers
Higher advertising costs
Zoning restrictions
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PLANNED SHOPPING CENTRE
Architecturally planned with unified theme for number of outlets
Deliberately developed site with complementary retail outlets
Market catchments achieved through amalgam of different retailers
Strengths:
Balanced and comprehensive retail offers
Freedom to shop in comfort to satisfy all needs in single centre
Increased security and reduction of theft
Weaknesses:
Inflexible rental agreements such as opening and closing hours Higher rents, restrictions on the types of goods sold
Small stores may not be successful
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REGIONAL SHOPPING CENTRE
Large, planned shopping facility
Attracts geographically dispersed market
Has one or two large departmental stores
Minimum space of 1,00,000 Sq. feet
50 to more than 150 smaller retailers
Broad and deep assortment of goods and
services
Caters to a minimum of 1,00,000 shoppers in the
vicinity of 30 minute drive
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COMMUNITY SHOPPING
CENTRE Moderate in size and planned store facility
with branch departmental store
Composition of several smaller stores Offers moderate assrotment of goods and
services
Caters to 20,000 ± 1,00,000 population Balanced tenancy
Long-range planning
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NEIGHBOURING SHOPPING
CENTRE Planned shopping format with a larger store ± a
supermarket/ a drug store
Other retailers include a bakery, laundry, dry
cleaner, stationary store, barber shop or beautyparlor, hardware store, restaurant, liquor store,
gas station etc.
Focus is on convenience-oriented goods andservices
Serves 3,000 ± 50,000, within 15 minute drive
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CHOICE OF GENERAL
LOCATION
Careful evaluation and choice of specificsites
Isolated store ± a highway or a sidestreet?
UBD- CBD? SBD? NBD? or a String?
Planned area ± Regional, Community or
Neighbourhood shopping centre? Position of store in a block, side of street,
terms of tenancy
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LOCATION AND SITE
EVALU
ATION Assessment of general locations and
specific sites within them
Pedestrian Traffic Vehicular Traffic
Parking Facilities
Store Composition Specific Site
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PEDESTRIAN TRAFFIC
No. and type of people pass by
Separation of the count by age and gender
Division of the count by time Pedestrian interviews
Spot analysis of shopping trips
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VEHICULAR TRAFFIC
Quantity and characteristics of vehicular
traffic
Trafic counts Extent and timing of congestion
Driving time and driving difficulties
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PARKING FACILITIES
Number and quanlity of parking spots
Distance from store sites
Employee parking
4 ± 5 parking spaces per 1000 sq.ft.
Nonshoppers parking may be charged
Validation of shoppers parking
Double-deck parking tiers Large parking space than required ± a
disadvantage
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SPECIFIC SITE
Visibility
Placement ± corner-influence
Size and shape of lot Size and shape of building
Condition and age of the lot and building
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TERMS OF OCCUPANCY
Ownership Vs. Leasing
Ownership is common for small stores or at inexpensive locations
No threat of vacation by the owner
Flexible and customized structure possible
High initial costs
Long-term commitment
Inflexibility in changing sites
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TYPES OF LEASES
Straight Lease ± Periodic fixed rent
Graduated Lease ± Rent increases by a fixed amount at specified periods, yardstick being
inflation or fixed increase
Percentage Lease ± Rent linked to percentage of sales
± Gives protection to retailer
± Minimum rent + maximum increase
Maintenance Recoupment ± Landlord has a right to increase rent on the proof of increase in
insurance, taxes, utility bills Net Lease
± Retailer is responsible for all maintenance and utility charges
± Rent is more stable for property owner
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OVERALL RATING
The last task in selection of a general
location and specific site
Computation of overall ratings Performance of all the criteria
Comparison of alternative locations