Chapter 7 assignment new to ues

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


City or Town Location Gentrification- Bringing

population back to the cities.

Unplanned

Advantage: Low occupancy cost High pedestrian traffic

Disadvantages: Limited traffic Parking Convenience


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


Main Street Secondary business

district in a suburb or within a large city.

Unplanned

Advantages: Occupancy cost low

Disadvantages: Little traffic Restrictions apply


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


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


Merchandise Kiosks

small temporary selling stations located in walkways of enclosed malls, airports, train stations or office building lobbies


Airports

People arrive for flights early, more time to shop


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.


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.


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

Chapter 7 assignment new to ues

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