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IMPORTANCE OF LOCATION 
DECISION 
Location is a major cost factor because it 
Involves large capital investment 
Affects t...
IMPORTANCE OF LOCATION 
DECISION 
Location is a major revenue factor because it 
Affects the amount of customer traffic 
A...
IMPORTANCE OF LOCATION 
DECISION 
1st LOCATION 
2nd LOCATION 
3rd LOCATION
LEVELS OF LOCATION DECISION 
& ITS DETERMINING FACTORS 
SELECTION OF A CITY 
SELECTION OF AN AREA WITHIN CITY 
IDENTIFICAT...
LEVELS OF LOCATION 
DECISION & ITS 
DETERMINING 
FACTORS 
SELECTION OF A CITY
SELECTION OF A CITY 
POPULATION & GROWTH TRENDS 
CURRENT POPULATION 
POPULATION DYNAMICS – 
Apartments V/S Homes, 
Populat...
SELECTION OF A CITY 
SIZE OF THE CITY’S TRADING AREA 
PRIMARY , SECONDARY, TERTIARY 
PURCHASING POWER & ITS DISTRIBUTION 
...
LEVELS OF LOCATION 
DECISION & ITS 
DETERMINING 
FACTORS 
SELECTION OF AN 
AREA WITHIN CITY
AREA WITHIN CITY 
CUSTOMER ATTRACTION OF SHOPPING DISTRICT 
QUANTITATIVE & QUALITATIVE COMPETITION 
TRAFFIC AND TRAFFIC PA...
LEVELS OF LOCATION 
DECISION & ITS 
DETERMINING 
FACTORS 
IDENTIFICATION OF 
A SPECIFIC SITE
SITE DECISION 
ADEQUACY AND POTENTIAL TRAFFIC 
COMPLEMENTARY NATURE OF ADJACENT STORE 
ADEQUACY OF PARKING 
TENANCY MIX – ...
OWNERSHIP V/S LEASE 
OWNERSHIP 
ADVANTAGES 
# Increase in real estate value can 
be solely enjoyed by the Owner 
# Physica...
OWNERSHIP V/S LEASE 
LEASE 
ADVANTAGES 
# No Initial Investment except Deposit 
(if any) 
# No Initial Interest 
# Opportu...
LOCATION OF A WAREHOUSE 
(HUB) 
WAREHOUSE 
HUB 
RETAIL STORE 
RETAIL STORE 
RETAIL STORE 
RETAIL STORE 
RETAIL STORE 
RETA...
TYPES OF LOCATION 
FREE STANDING LOCATIONS 
UNPLANNED CBD’s 
PLANNED SHOPPING CENTRES
TYPES OF LOCATION 
FREE STANDING LOCATIONS 
NEIGHBOURHOOD STORES HIGHWAY STORES
TYPES OF LOCATION 
UNPLANNED CBD’s 
NEIGHBOURHOOD- BUSINESS - DISTRICT 
DOWNTOWN OR CENTRAL BUSINESS DISTRICT 
SUBURBAN BU...
TYPES OF LOCATION 
PLANNED SHOPPING CENTRES 
REGIONAL SHOPPING CENTRES OF MALLS 
NEIGHBOURHOOD / COMMUNITY 
SPECIALITY MAR...
TYPES OF LOCATION 
BROADER CLASSIFICATION RELEVANT IN 
DESIGNED (MAIN) 
INDIA
TYPES OF LOCATION 
BROADER CLASSIFICATION RELEVANT IN 
INDIA 
DESIGNED (MAIN)
TYPES OF LOCATION 
BROADER CLASSIFICATION RELEVANT IN 
EMERGED (MAIN) 
INDIA
TYPES OF LOCATION 
BROADER CLASSIFICATION RELEVANT IN 
INDIA 
NOT MAIN – EITHER EMERGED OR DESIGNED
TYPES OF LOCATION 
BROADER CLASSIFICATION RELEVANT IN 
INDIA 
DESIGNED BY 
BIULDER/ DEVELOPER 
As Townships 
But not Malls
TYPES OF LOCATION 
BROADER CLASSIFICATION RELEVANT IN 
SHOPPING MALLS 
INDIA
TYPES OF LOCATION 
BROADER CLASSIFICATION RELEVANT IN 
INDIA 
EMERGED FROM PICULAR NEED
TYPES OF LOCATION 
BROADER CLASSIFICATION RELEVANT IN 
INDIA 
AREA WHICH CAN 
BE CONVERTED
TYPES OF LOCATION 
BROADER CLASSIFICATION RELEVANT IN 
LOW RENT DISTRICT 
INDIA
TYPES OF LOCATION 
BROADER CLASSIFICATION RELEVANT IN 
DESIGNED (MAIN) 
EMERGED (MAIN) 
NOT MAIN – EITHER EMERGED OR DESIG...
THE SPREAD OF ORGANISED 
RETAIL IN INDIA 
BANGALORE CHENNAI 
MUMBAI DELHI KOLKATTA 
PUNE GURGOAN NOIDA INDORE CHANDIGARH 
...
HOW FAR IS THE CUSTOMER WILLING TO 
TRAVEL 
Jewellery 1.5 km 
Apparel 2.32 km 
Music 2.54 km 
Books 2.74 km 
Grocery 4.0 k...
• Reilly’s retail gravitational theory 
(Ba / Bb) = (Pa / Pb) ((Db / Da) 
Ba = the business which City A draws from the in...
Site selection in retail
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Site selection in retail

CRITERIA FOR SITE SELECTION FOR A RETAIL FORMAT

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Site selection in retail

  1. 1. IMPORTANCE OF LOCATION DECISION Location is a major cost factor because it Involves large capital investment Affects transportation costs Affects human resources cost e.g. Salaries
  2. 2. IMPORTANCE OF LOCATION DECISION Location is a major revenue factor because it Affects the amount of customer traffic Affects the volume of business
  3. 3. IMPORTANCE OF LOCATION DECISION 1st LOCATION 2nd LOCATION 3rd LOCATION
  4. 4. LEVELS OF LOCATION DECISION & ITS DETERMINING FACTORS SELECTION OF A CITY SELECTION OF AN AREA WITHIN CITY IDENTIFICATION OF A SPECIFIC SITE
  5. 5. LEVELS OF LOCATION DECISION & ITS DETERMINING FACTORS SELECTION OF A CITY
  6. 6. SELECTION OF A CITY POPULATION & GROWTH TRENDS CURRENT POPULATION POPULATION DYNAMICS – Apartments V/S Homes, Population Density Likelihood of Growth, Decline, Constant THEIR INCOME LEVEL SEASONAL CHANGES / PERIODICAL INCOMES AGE GROUPS & SEXUAL COMPOSITION
  7. 7. SELECTION OF A CITY SIZE OF THE CITY’S TRADING AREA PRIMARY , SECONDARY, TERTIARY PURCHASING POWER & ITS DISTRIBUTION DISPOSIBLE INCOME TRADE POTENTIAL NUMBER,SIZE,QUALITY OF COMPETITION
  8. 8. LEVELS OF LOCATION DECISION & ITS DETERMINING FACTORS SELECTION OF AN AREA WITHIN CITY
  9. 9. AREA WITHIN CITY CUSTOMER ATTRACTION OF SHOPPING DISTRICT QUANTITATIVE & QUALITATIVE COMPETITION TRAFFIC AND TRAFFIC PATTERNS NATURE OF ZONING REGULATION DIRECTION OF THE AREA EXPANSION VISIBILITY OF THE STORE
  10. 10. LEVELS OF LOCATION DECISION & ITS DETERMINING FACTORS IDENTIFICATION OF A SPECIFIC SITE
  11. 11. SITE DECISION ADEQUACY AND POTENTIAL TRAFFIC COMPLEMENTARY NATURE OF ADJACENT STORE ADEQUACY OF PARKING TENANCY MIX – IF MALL / SHOPPING CENTRE OWNERSHIP OR LEASE
  12. 12. OWNERSHIP V/S LEASE OWNERSHIP ADVANTAGES # Increase in real estate value can be solely enjoyed by the Owner # Physical Changes in the property can be done # Liberty to rent a store # No Interference of Landlord DISADVANTAGES # Huge Initial Investment # Heavy Interest # Maintenance costs # Decrease in real estate value has to be borne by the Owner
  13. 13. OWNERSHIP V/S LEASE LEASE ADVANTAGES # No Initial Investment except Deposit (if any) # No Initial Interest # Opportunity to move elsewhere at the expiration of the lease # Ability to concentrate on merchandising instead of on real estate
  14. 14. LOCATION OF A WAREHOUSE (HUB) WAREHOUSE HUB RETAIL STORE RETAIL STORE RETAIL STORE RETAIL STORE RETAIL STORE RETAIL STORE RETAIL STORE
  15. 15. TYPES OF LOCATION FREE STANDING LOCATIONS UNPLANNED CBD’s PLANNED SHOPPING CENTRES
  16. 16. TYPES OF LOCATION FREE STANDING LOCATIONS NEIGHBOURHOOD STORES HIGHWAY STORES
  17. 17. TYPES OF LOCATION UNPLANNED CBD’s NEIGHBOURHOOD- BUSINESS - DISTRICT DOWNTOWN OR CENTRAL BUSINESS DISTRICT SUBURBAN BUSINESS DISTRICT SECONDARY BUSINESS DISTRICT
  18. 18. TYPES OF LOCATION PLANNED SHOPPING CENTRES REGIONAL SHOPPING CENTRES OF MALLS NEIGHBOURHOOD / COMMUNITY SPECIALITY MARKET PERIODIC MARKETS / WEEKLY
  19. 19. TYPES OF LOCATION BROADER CLASSIFICATION RELEVANT IN DESIGNED (MAIN) INDIA
  20. 20. TYPES OF LOCATION BROADER CLASSIFICATION RELEVANT IN INDIA DESIGNED (MAIN)
  21. 21. TYPES OF LOCATION BROADER CLASSIFICATION RELEVANT IN EMERGED (MAIN) INDIA
  22. 22. TYPES OF LOCATION BROADER CLASSIFICATION RELEVANT IN INDIA NOT MAIN – EITHER EMERGED OR DESIGNED
  23. 23. TYPES OF LOCATION BROADER CLASSIFICATION RELEVANT IN INDIA DESIGNED BY BIULDER/ DEVELOPER As Townships But not Malls
  24. 24. TYPES OF LOCATION BROADER CLASSIFICATION RELEVANT IN SHOPPING MALLS INDIA
  25. 25. TYPES OF LOCATION BROADER CLASSIFICATION RELEVANT IN INDIA EMERGED FROM PICULAR NEED
  26. 26. TYPES OF LOCATION BROADER CLASSIFICATION RELEVANT IN INDIA AREA WHICH CAN BE CONVERTED
  27. 27. TYPES OF LOCATION BROADER CLASSIFICATION RELEVANT IN LOW RENT DISTRICT INDIA
  28. 28. TYPES OF LOCATION BROADER CLASSIFICATION RELEVANT IN DESIGNED (MAIN) EMERGED (MAIN) NOT MAIN – EITHER EMERGED OR DESIGNED DESIGNED BY BIULDER/ DEVELOPER SHOPPING MALLS EMERGED FROM PICULAR NEED AREA WHICH CAN BE CONVERTED LOW RENT DISTRICT INDIA
  29. 29. THE SPREAD OF ORGANISED RETAIL IN INDIA BANGALORE CHENNAI MUMBAI DELHI KOLKATTA PUNE GURGOAN NOIDA INDORE CHANDIGARH NAGPUR BHOPAL JAIPUR UDAIPUR NASIK AHEMDABAD COCHIN MADURAI
  30. 30. HOW FAR IS THE CUSTOMER WILLING TO TRAVEL Jewellery 1.5 km Apparel 2.32 km Music 2.54 km Books 2.74 km Grocery 4.0 km Cosmetics 4.5 km 1 2 3 5 4 KSA Technopak Consumer Outlook 2002
  31. 31. • Reilly’s retail gravitational theory (Ba / Bb) = (Pa / Pb) ((Db / Da) Ba = the business which City A draws from the intermediate place Bb = the business which City B draws from the intermediate place Pa = Population of City A Pb = Population of City B Da = Distance of city A to the intermediate place Db = Distance of city B to the intermediate place 2

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