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Chapter  10 Site Selection RETAIL  MANAGEMENT: A STRATEGIC APPROACH ,   10th Edition BERMAN   EVANS
Chapter Objectives <ul><li>To thoroughly examine the types of locations available to a retailer: isolated store, unplanned...
Chapter Objectives (cont.) <ul><li>To discuss several criteria for evaluating general retail locations and the specific si...
Overview <ul><li>Step 1 : investigate alternative trading areas (Chapter 9) </li></ul><ul><li>Step 2 : determine what type...
Three Types of Locations Isolated Store Planned Shopping Center Unplanned Business District
Isolated Stores <ul><li>Advantages </li></ul><ul><ul><li>No competition </li></ul></ul><ul><ul><li>Low rental costs </li><...
Isolated Stores <ul><li>Large-store formats </li></ul><ul><ul><li>Wal-Mart </li></ul></ul><ul><ul><li>Costco  </li></ul></...
Figure 10-1: Site Selection and Target
Unplanned Business Districts Central Business District Secondary Business District Neighborhood Business District String
Figure 10-2: A Revitalized Central Business District
Figure 10-3: Unplanned Business Districts and Isolated Locations
Planned Shopping Centers <ul><li>Advantages </li></ul><ul><li>Well-rounded assortments </li></ul><ul><li>Strong suburban p...
Figure 10-4: Eaton Centre, Toronto
Table 10-1a:  Characteristics of Centers
Table 10-1b:  Characteristics of Centers
Table 10-1c:  Characteristics of Centers
Figure 10-5: Festival Walk,  Hong Kong
Location and Site Evaluation One-Hundred  Percent  Location  The  optimum site  for a  particular store
Figure 10-7:  Location/Site Evaluation Checklist
Pedestrian Traffic <ul><li>The most crucial measures of a location’s and site’s value are the number and type of people pa...
Vehicular Traffic <ul><li>Important for  </li></ul><ul><ul><li>convenience stores </li></ul></ul><ul><ul><li>outlets in re...
Parking Considerations <ul><li>Number and quality of spots </li></ul><ul><li>Distance of spots from stores </li></ul><ul><...
How Many Parking Spaces? <ul><li>Shopping centers = 4-5 spaces per 1000 square feet of gross floor space </li></ul><ul><li...
Figure 10-8:  Corner Influence and Sean John
Terms of Occupancy Considerations <ul><li>Ownership versus Leasing </li></ul><ul><li>Type of Lease </li></ul><ul><li>Opera...
Types of Leases Percentage Straight Maintenance- Increase Recoupment Graduated Net
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10 siteselection

  1. 1. Chapter 10 Site Selection RETAIL MANAGEMENT: A STRATEGIC APPROACH , 10th Edition BERMAN EVANS
  2. 2. Chapter Objectives <ul><li>To thoroughly examine the types of locations available to a retailer: isolated store, unplanned business district, and planned shopping center </li></ul><ul><li>To note the decisions necessary in choosing a general retail location </li></ul><ul><li>To describe the concept of one-hundred percent location </li></ul>
  3. 3. Chapter Objectives (cont.) <ul><li>To discuss several criteria for evaluating general retail locations and the specific sites within them </li></ul><ul><li>To contrast alternative terms of occupancy </li></ul>
  4. 4. Overview <ul><li>Step 1 : investigate alternative trading areas (Chapter 9) </li></ul><ul><li>Step 2 : determine what type of location is desirable </li></ul><ul><li>Step 3 : select the general location </li></ul><ul><li>Step 4 : evaluate alternative specific store sites </li></ul><ul><li>Chapter 10 discusses steps 2-4 </li></ul>
  5. 5. Three Types of Locations Isolated Store Planned Shopping Center Unplanned Business District
  6. 6. Isolated Stores <ul><li>Advantages </li></ul><ul><ul><li>No competition </li></ul></ul><ul><ul><li>Low rental costs </li></ul></ul><ul><ul><li>Flexibility </li></ul></ul><ul><ul><li>Good for convenience stores </li></ul></ul><ul><ul><li>Better visibility </li></ul></ul><ul><ul><li>Adaptable facilities </li></ul></ul><ul><ul><li>Easy parking </li></ul></ul><ul><li>Disadvantages </li></ul><ul><ul><li>Difficulty attracting customers </li></ul></ul><ul><ul><li>Travel distance </li></ul></ul><ul><ul><li>Lack of variety for customers </li></ul></ul><ul><ul><li>High advertising expenses </li></ul></ul><ul><ul><li>No cost sharing </li></ul></ul><ul><ul><li>Restrictive zoning laws </li></ul></ul>
  7. 7. Isolated Stores <ul><li>Large-store formats </li></ul><ul><ul><li>Wal-Mart </li></ul></ul><ul><ul><li>Costco </li></ul></ul><ul><li>Convenience stores </li></ul><ul><ul><li>7-Eleven </li></ul></ul>
  8. 8. Figure 10-1: Site Selection and Target
  9. 9. Unplanned Business Districts Central Business District Secondary Business District Neighborhood Business District String
  10. 10. Figure 10-2: A Revitalized Central Business District
  11. 11. Figure 10-3: Unplanned Business Districts and Isolated Locations
  12. 12. Planned Shopping Centers <ul><li>Advantages </li></ul><ul><li>Well-rounded assortments </li></ul><ul><li>Strong suburban population </li></ul><ul><li>One-stop, family shopping </li></ul><ul><li>Cost sharing </li></ul><ul><li>Transportation access </li></ul><ul><li>Pedestrian traffic </li></ul><ul><li>Disadvantages </li></ul><ul><li>Limited flexibility </li></ul><ul><li>Higher rent </li></ul><ul><li>Restricted offerings </li></ul><ul><li>Competition </li></ul><ul><li>Requirements for association memberships </li></ul><ul><li>Too many malls </li></ul><ul><li>Domination by anchor stores </li></ul>
  13. 13. Figure 10-4: Eaton Centre, Toronto
  14. 14. Table 10-1a: Characteristics of Centers
  15. 15. Table 10-1b: Characteristics of Centers
  16. 16. Table 10-1c: Characteristics of Centers
  17. 17. Figure 10-5: Festival Walk, Hong Kong
  18. 18. Location and Site Evaluation One-Hundred Percent Location The optimum site for a particular store
  19. 19. Figure 10-7: Location/Site Evaluation Checklist
  20. 20. Pedestrian Traffic <ul><li>The most crucial measures of a location’s and site’s value are the number and type of people passing by </li></ul><ul><li>Proper pedestrian traffic count should include </li></ul><ul><ul><li>age and gender (exclude very young children) </li></ul></ul><ul><ul><li>count by time of day </li></ul></ul><ul><ul><li>pedestrian interviews </li></ul></ul><ul><ul><li>spot analysis of shopping trips </li></ul></ul>
  21. 21. Vehicular Traffic <ul><li>Important for </li></ul><ul><ul><li>convenience stores </li></ul></ul><ul><ul><li>outlets in regional shopping centers </li></ul></ul><ul><ul><li>car washes </li></ul></ul><ul><ul><li>suburban areas with limited pedestrian traffic </li></ul></ul>
  22. 22. Parking Considerations <ul><li>Number and quality of spots </li></ul><ul><li>Distance of spots from stores </li></ul><ul><li>Availability of employee parking </li></ul><ul><li>Price to charge customers for parking </li></ul>
  23. 23. How Many Parking Spaces? <ul><li>Shopping centers = 4-5 spaces per 1000 square feet of gross floor space </li></ul><ul><li>Supermarkets = 10-15 spaces per 1000 square feet of gross floor space </li></ul><ul><li>Furniture stores = 3-4 spaces per 1000 square feet of gross floor space </li></ul>
  24. 24. Figure 10-8: Corner Influence and Sean John
  25. 25. Terms of Occupancy Considerations <ul><li>Ownership versus Leasing </li></ul><ul><li>Type of Lease </li></ul><ul><li>Operations and Maintenance Costs </li></ul><ul><li>Taxes </li></ul><ul><li>Zoning Restrictions </li></ul><ul><li>Voluntary Regulations </li></ul>
  26. 26. Types of Leases Percentage Straight Maintenance- Increase Recoupment Graduated Net

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