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Chapter 10 10 Site Selection RETAIL MANAGEMENT: A STRATEGIC APPROACH, 10th Edition BERMAN BERMAN EVANS EVANS
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Transcript of 10 siteselection
Chapter 1010Site Selection
RETAIL MANAGEMENT:A STRATEGICAPPROACH,
10th Edition
BERMANBERMAN EVANS EVANS
10-2
Chapter Objectives
To thoroughly examine the types of locations available to a retailer: isolated store, unplanned business district, and planned shopping center
To note the decisions necessary in choosing a general retail location
To describe the concept of one-hundred percent location
10-3
Chapter Objectives (cont.)
To discuss several criteria for evaluating general retail locations and the specific sites within them
To contrast alternative terms of occupancy
10-4
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 2-4
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Three Types of Locations
IsolatedStore
PlannedShoppingCenter
UnplannedBusinessDistrict
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Isolated Stores
AdvantagesAdvantages* No competition* Low rental costs* Flexibility* Good for
convenience stores* Better visibility* Adaptable facilities* Easy parking
DisadvantagesDisadvantages* Difficulty attracting
customers* Travel distance* Lack of variety for
customers* High advertising
expenses* No cost sharing* Restrictive zoning
laws
10-7
Isolated Stores
• Large-store formats– Wal-Mart– Costco
• Convenience stores– 7-Eleven
10-8
Figure 10-1: Site Selection and Target
10-9
Unplanned Business Districts
Central BusinessDistrict
SecondaryBusinessDistrict
NeighborhoodBusinessDistrict
String
10-10
Figure 10-2: A Revitalized Central Business District
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Figure 10-3: Unplanned Business Districts and Isolated Locations
10-12
Planned Shopping Centers
AdvantagesAdvantages* 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 for
association memberships
* Too many malls* Domination by anchor
stores
10-13
Figure 10-4: Eaton Centre, Toronto
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Table 10-1a: Characteristics of Centers
Features Regional Center Total site area 30-100+
Total sq. ft. leased 400,001-2,000,000+
Principal tenant 1 or more department stores
Number of stores 50-100
Minimum # of people in trading area
100,000+
Driving time of trading area Up to 30 minutes
Location Outside central city on highway
10-15
Table 10-1b: Characteristics of Centers
Features Community CenterTotal site area 10-30
Total sq. ft. leased 100,000-400,000
Principal tenant Branch department store
Number of stores 15-25
Minimum # of people intrading area
20,000-100,000
Driving time of tradingarea
Up to 20 minutes
Location Close to residentialareas
10-16
Table 10-1c: Characteristics of Centers
Features NeighborhoodCenter
Total site area 3-10
Total sq. ft. leased 30,000-100,000
Principal tenant Supermarket ordrugstore
Number of stores 5-15
Minimum # of people intrading area
3,000-50,000
Driving time of tradingarea
Less than 15 minutes
Location Along majorthoroughfare in singleresidential areas
10-17
Figure 10-5: Festival Walk, Hong Kong
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Location and Site Evaluation
One-Hundred Percent Location
The optimum site
for a particular store
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Figure 10-7: Location/Site
Evaluation Checklist
10-20
Pedestrian Traffic
The most crucial measures of a location’s and 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
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Vehicular Traffic
• Important for – convenience stores– outlets in regional shopping centers– car washes– suburban areas with limited
pedestrian traffic
10-22
Parking Considerations
Number and quality of spots Distance of spots from stores Availability of employee parking Price to charge customers for parking
10-23
How Many Parking Spaces?
• Shopping centers = 4-5 spaces per 1000 square feet of gross floor space
• Supermarkets = 10-15 spaces per 1000 square feet of gross floor space
• Furniture stores = 3-4 spaces per 1000 square feet of gross floor space
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Figure 10-8: Corner Influence and Sean John
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Terms of Occupancy Considerations
• Ownership versus Leasing• Type of Lease• Operations and Maintenance Costs• Taxes• Zoning Restrictions• Voluntary Regulations
10-26
Types of Leases
Percentage
Straight
Maintenance-Increase
Recoupment
Graduated Net
