2. Types of Retail Locations
There are two main types of locations:
•Unplanned locations
•Planned locations
3. Unplanned Locations
There are three types of
unplanned retail locations:
Freestanding Sites
Freestanding sites are locations
for an individual, isolated store
unconnected to other stores;
however they might be near
other freestanding stores or near
a shopping center.
4. Urban Locations
Urban areas in large cities offer three
types of locations: the central business
district, inner city, and gentrified
residential sites.
Central Business District
The central business district is the
traditional downtown financial and
business area in a city or town.
5. Inner City
The inner city is a low-income
residential area within a large city,
crime makes living in the inner city
dangerous.
Gentrified Residential Areas
Many inner city areas are going
through a process of
gentrification – the renewal and
rebuilding of offices, housing,
and retailers in deteriorating
areas.
6. Main Street
Main street refers to the traditional
downtown shopping area in smaller
towns and secondary shopping areas
in large cities and their suburbs.
7. Shopping Centers and Planned Retail Locations
A shopping center is a group of retail
and other commercial establishments
that are planned, developed, owned,
and managed as a single property.
9. Power Centers
Power centers are shopping centers
that consist primarily of collections
of big-box retail stores, such as full-
line discount stores (Target), off-
price stores (Marshalls), warehouse
clubs (Costco), and category
specialists (Lowe’s, Staples,
Michaels, Barnes & Noble, Best Buy,
Sports Authority, andToys “R” Us).
10. Enclosed Shopping Malls
Shopping malls are enclosed,
climate-controlled, lighted
shopping centers with retail
stores on one or both sides of an
enclosed walkway. Parking is
usually provided around the
perimeter of the mall. Shopping
malls are classified a either a
regional mall (less than 800,000
square feet) or a super-regional
mall (more than 800,000 square
feet).
11. LifestyleCenters
Lifestyle centers are shopping
centers that have an open-air
configuration of specialty stores,
entertainment, and restaurants,
with design ambience and
amenities such as fountains and
street furniture.
.
15. Larger, Multiformat Developments – Omnicenters
New shopping center developments are combining enclosed malls,
lifestyle centers, and power centers referred to as omnicenters
16. Nontraditional Locations
Pop-up stores, stores within a store, kiosks, and airports are other location
alternatives for many retailers.
Pop-Up Stores and
OtherTemporary
Location
Pop-up stores are stores in
temporary locations that focus
on new products or a limited
group of products.
18. Merchandise Kiosks
Merchandise kiosks are small
selling spaces, typically located
in the walkways of enclosed
malls, airports, college
campuses, or office building
lobbies.
20. Location and Retail Strategy
The selection of a location type reinforces the retailer’s strategy.The location-type
decision is consistent with the shopping behavior and size of the target market
and the retailers positioning.
Shopping Behavior of Consumers
in Retailer’sTarget Market
A critical factor affecting the type of
location that consumers select to visit is the
shopping situation in which they are
involved.Three types of shopping situations
are convenience shopping, comparison
shopping, and specialty shopping.
21. Convenience Shopping
When consumers are engaged in
convenience shopping situations,
they are primarily concerned with
minimizing their effort to get the
product or service they want.
24. Density ofTarget Market
Another important factor that affects the retailer’s choice of location type
is the density of the retailer’s target market in relation to the location.
25. C. Uniqueness of Retail Offering
Convenience of their locations is more important for retailers with
similar offerings than it is for specialty retailers
26. VI Societal and Legal Considerations
Urban Sprawl
Urban sprawl is the increased
expansion of residential and
shopping center development
in suburban and rural areas
outside of their respective
urban centers.
Societal and legal considerations often restrict where retailers can
locate and operate their stores.
27. Opposition to Big-Box Retailers
Retailers that operate big-box stores like Walmart,Target, Costco, and Home
Depot often meet with a great deal of resistance when they plan to build a store
in a community.
28. Zoning
Local governments is the United States use zoning to regulate land uses in
specific areas to prevent any interference with existing uses by residents or
businesses, as well as encourage the preservation of a communities sense of
identity
29. Building Codes
Building codes are legal
restrictions that specify the
type of building, signs, size
and type of parking lot, and
so forth, that can be used at
a particular location.
30. Signs
Restrictions on the use of signs
can affect a particular sites
desirability. Sign sizes and styles
may be restricted by building
codes, zoning ordinances, or
even the shopping center
management.
