berman 10 plums
TRANSCRIPT
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10-1Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Site Selection
RETAIL MANAGEMENT:
A STRATEGIC
APPROACH
11th Edition11th Edition
BERMAN EVANS
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10-2Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Chapter Objectives
To thoroughly examine the types of
locations available to a retailer: isolatedstores, 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
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10-3Retail 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 specificsites within them
To contrast alternative terms of occupancy
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10-4Retail 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 isdesirable
Step 3: select the general location
Step 4: evaluate alternative specific storesites
Chapter 10 discusses steps 2Chapter 10 discusses steps 2--4.4.
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10-5Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Three Types of LocationsThree Types of Locations
Isolated
Store
Planned
ShoppingCenter
Unplanned
Business
District
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10-6Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Isolated StoresIsolated Stores
A dvantages A dvantages
* No competition
*
Low rental costs* Flexibility
* Good forconvenience stores
* Better visibility
* A daptable facilities
* Easy parking
DisadvantagesDisadvantages
* Difficulty attractingcustomers
* Travel distance
* Lack of variety forcustomers
* High advertising
expenses* No cost sharing
* Restrictive zoninglaws
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10-7Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Examples of Isolated StoresExamples of Isolated Stores
y Large-store formats
y Wal-Mart
y Costcoy Convenience stores
y 7-Eleven
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10-8Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 10-1: Site Selection and Starbucks
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10-9Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Unplanned Business DistrictsUnplanned Business Districts
Central BusinessDistrict
Secondary
Business
District
Neighborhood
BusinessDistrict
String
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10-10Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 10-2: A Revitalized Central Business
District
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10-11Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 10-3: Unplanned Business Districts and
Isolated Locations
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A central business district (CBD) is the hub of retailing in a city, andis synonymous with the term downtown.
strength weaknesses
y Product assortment
y
Access to public transportationy Variety of store types and
positioning strategies
y Wide range of prices
y Variety of customer services
y Pedestrian trafficy
y Inadequate parking, and traffic
and delivery congestiony Travel time for suburbanites
y Frail condition of some cities(e.g., aging stores) compared
with their suburbs
y
Poor image to potentialconsumers
y High rents and taxes
y Relocation of stores to suburbs
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A secondary business district (SBD) is an unplanned shopping area
in a city or town that is usually bounded by the intersection of twomajor streets.
Strength Weaknesses
y Product assortment
y Access to publictransportation
y Less crowding
y More personal service
y Location near residentialareas
y Discontinuity of offerings
y High rent and taxesy Traffic and delivery
congestion
y Aging facilities
y Parking difficulties
y Fewer chain outlets
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A neighborhood business district (NBD) is an unplanned shopping
area that appeals to the convenience shopping and service needsof a single residential area.
A dvantages Disadvantages
y Good location
y Long store hoursy Good parking
y Less hectic atmosphere
y Limited selection
y Higher prices
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A string is an unplanned shopping area comprising a group of
retail stores, often with similar or compatible product lines,located along a street or highway.
A dvantages Disadvantages
y Lower rent
y More flexibility y Better road visibility and
parking
y Lower operating costs
y More traffic
y Some sharing of commoncosts
y Less product variety
y Increased travel timey Higher advertising costs
y Zoning restrictions
y The need to build premises
y
Competitiony Less control over prices and
less loyalty
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10-16Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Planned Shopping CentersP
lanned Shopping Centers
A dvantages A dvantages
* Well-rounded
assortments* Strong suburban
population
* One-stop, family shopping
* Cost sharing
* Transportation access
* Pedestrian traffic
DisadvantagesDisadvantages* Limited flexibility
*
Higher rent* Restricted offerings
* Competition
* Requirements forassociation
memberships* Too many malls
* Domination by anchorstores
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10-17Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 10-4: Macys and Shopping Centers
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10-18Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Table 10-1a: Characteristics of Centers
Features Regional enter Total site area 30-100+
Total sq. ft. leased 400,001-2,000,000+Principal tenant 1+ department stores
Number of stores 50-150 or more
Minimum # of people intrading area
100,000+
Driving time of trading area Up to 30 minutes
Location Outside central city onhighway
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10-19Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Table 10-1b: Characteristics of Centers
Features Community Center
Total site area 10-40+
Total sq. ft. leased 100,001-400,000Principal tenant Supermarket or drug store
Number of stores 5-15
Minimum # of people
in trading area
3,000-50,000
Driving time of tradingarea
Fewer than 15 minutes
Location In a single residentialarea
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10-20Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Table 10-1c: Characteristics of Centers
Features Neighborhood Center
Total site area 3-15+
Total sq. ft. leased 300,000-100,000Principal tenant Branch department store
Number of stores 15-25 or more
Minimum # of people
in trading area
20,000-100,000
Driving time of tradingarea
Up to 20 minutes
Location Close to a populatedresidential area
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10-21Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 10-5: Festival Walk, Hong Kong
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10-22Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Location and SiteEv
aluationLocation and SiteEv
aluation
One-Hundred Percent
Location
Theoptimum site
for a
particular store
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10-23Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 10-7:
Location/Site
EvaluationChecklist
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10-24Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Pedestrian TrafficPedestrian Traffic
The most crucial measures of a location/sites 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
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10-25Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Vehicular TrafficVehicular Traffic
y Important for
convenience stores outlets in regional shopping centers
car washes
suburban areas with limited pedestrian
traffic
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10-26Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Parking ConsiderationsParking Considerations
Number and quality of spots
Distance of spots from stores
A vailability of employee parking
Price to charge customers for parking
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10-27Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
How Many Parking Spaces?How Many Parking Spaces?
y Shopping centers = 4-5 spaces per 1000
square feet of gross floor spacey Supermarkets = 10-15 spaces per 1000
square feet of gross floor space
y Furniture stores = 3-4 spaces per 1000
square feet of gross floor space
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10-28Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 10-8: Corner Influence and Hersheys
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10-29Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Terms of Occupancy ConsiderationsTerms of Occupancy Considerations
y Ownership versus leasing
yT ype of lease
y Operations and maintenance costs
y Taxes
y Zoning restrictions
y Voluntary regulations
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10-30Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Types of LeasesTypes of Leases
Percentage
Straight
Maintenance-
Increase
Recoupment
Graduated Net
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10-31Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
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