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Retail LocationsChapter 7
Jessica Willey,
Samantha Green,
Nyssa Sumser
Types of Locations Unplanned Retail Locations Shopping Centers Other Location Opportunities Location and Retail Strategy Legal Considerations
Overview
Types of Locations
Freestanding sites City or Town Locations
Central Business District (CBD) Main Street Inner City
Unplanned Retail Locations
Freestanding Sites- Locations for individual, isolated store for other retailers. Outparcels- Stores not
connected to other stores in a shopping center, but in the same parking area.
Unplanned
Advantages: Convenience High traffic and visibility Modest occupancy cost Separation from competition Few restrictions
Disadvantages: No foot traffic No drawing power
Unplanned Retail Locations
City or Town Location Gentrification- Bringing
population back to the cities.
Unplanned
Advantage: Low occupancy cost High pedestrian traffic
Disadvantages: Limited traffic Parking Convenience
Unplanned Retail Locations
Central Business District (CBD) Traditional down town
business area in a city or a town.
Unplanned
Advantages: Draws in business Pedestrian Traffic Residents
Disadvantages: Shoplifting Poor parking
Unplanned Retail Locations
Main Street Secondary business
district in a suburb or within a large city.
Unplanned
Advantages: Occupancy cost low
Disadvantages: Little traffic Restrictions apply
Unplanned Retail Locations
Inner City High density urban area
with high unemployment and low median income than surrounding areas.
Unplanned
Advantage: High Sales High margins High profits
Disadvantage: Parking
Types of shopping centers
Neighborhood and Community Centers (strip Centers) Power Centers Shopping Malls Lifestyle Centers Mixed-use Developments (MXDs) Outlet Centers Theme/Festival Centers Larger, Multiformat Developments—Omnicenters
Shopping Centers
Shopping Centers
Neighborhood and Community Shopping Centers Strip shopping centers
Advantages: Convenient locations Easy parking Low occupancy cost
Disadvantages: Limited Trade area Lack entertainment
and restaurants Less customers
Attached row of stores Onsite parking
Shopping Centers
Power Centers Shopping centers that consist
primarily of collections of big-box retail stores such as discount stores (Target), off-price stores (Marshall’s), warehouse clubs (Costco), and category specialists (Lowe’s, Best Buy)
Advantages: Located near enclosed
malls Low occupancy costs Convenient Pedestrian traffic Convenient Large trade areas
Shopping Centers
Shopping Malls Enclosed, lighted shopping
centers with retail stores on sides of enclosed walkway.
Regional Malls Less than 800,000 square feet
Superregional Malls More than 800,000 square feet
Advantages: Many shoppers Large trade area Inexpensive entertainment Exercise, socialize, sheltered
Disadvantages: Higher occupancy cost Management control Competition intense Parking Appear run-down
Shopping Centers
Lifestyle Centers Shopping centers with open-
air configuration of specialty stores, entertainment, and restaurants.
Advantages: Parking Convenient Low occupancy cost Higher income area
Disadvantages: Less retail space Attract few customers
Shopping Centers
Mix-use Developments (MXDs) Combine several different
uses into one complex. Shopping centers, office tours, hotels, residential complexes, civic centers, and convention centers.
Advantages: Pedestrian-oriented Environment offers
consumers work, live, and play in a proximal area
Disadvantages: High occupancy cost
Shopping Centers
Outlet Centers These shopping centers
contain mostly manufacturers and retail outlet stores
Advantages: Lower occupancy cost
then shopping malls Entertainment
Disadvantages: Low traffic
Shopping Centers
Theme/Festival Centers Shopping centers that carry a
theme and incorporate it in their merchandise. Located in a historical place.
Advantages: Restaurant Entertainment
Disadvantages: Traffic mostly tourists No specialty stores No department stores
Larger, Multiformat Developments—Omnicenters
Combination of enclosed malls, lifestyle centers, and power centers.
Larger developments are targeted to generate more pedestrian traffic and longer shopping trips To capture cross-shopping consumers
Shopping Centers
Temporary or pop-up stores Store within a Store Merchandise Kiosks Airports
Other Location Opportunities
Other Location Opportunities
Temporary or pop-up stores Stores in temporary locations
that focus on a product(s)
Advantages: Very Versatile Low start up Costs
Store within a store
A nontraditional location for retailers is a store in a larger store
Other Location Opportunities
Merchandise Kiosks
small temporary selling stations located in walkways of enclosed malls, airports, train stations or office building lobbies
Other Location Opportunities
Airports
People arrive for flights early, more time to shop
Other Location Opportunities
Shopping Behavior of consumers in Retailer’s Target Market
Convenience Shopping Comparison Shopping Specialty Shopping
Density of Target Market Uniqueness of Retail Offering
Location & Retail Strategy
Convenience Shopping
Customers concerned with minimizing their effort to get the product or service they want.
Comparison Shopping Customers have a general idea about the type of product or
service they want, but they don’t have a well-developed preference for a brand or model.
Specialty shopping They know what they want and will not accept a substitute.
Location & Retail Strategy
Density of Target Market- Density of the target market
affects the choice of location type. Uniqueness of Retail Offering- convenience is less
important for unique retailers.
Location & Retail Strategy
Environmental and Sustainability issues Zoning and Building Codes
Zoning- determines how a particular site can be used Building codes- legal restrictions that specify the type, signs, size,
and type of parking lot and more that can be used in that location. Signs Licensing requirements
Legal Considerations
Groups 1 and 6
Find two or more stores for the following: Freestanding Sites, Central Business District, Main Street, and Inner City. Then define why each store is placed under that category including advantages and disadvantages. Use any media
Assignments
Groups 2 and 3
Visit 3 stores and define and analyze their trade area. Do you believe that the population living in the trade area provides the most potential for the stores? Is it a good location in general? Why or why not. Use any media
Assignments
Group 7
Analyze the tenant mix of current and coming soon tenants located at Rushmore Crossing. Do the tenants compliment one another? What changes would you make? What type/types of location and retail strategy does the overall shopping center use? Use any media
Group 5 choose any assignment
Assignments