Académique Documents
Professionnel Documents
Culture Documents
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Retailing Strategy
Retail Market and Financial Strategy Chapter 5, 6 Human Resource Management Chapter 9
Retail Locations Chapter 7 Site Locations Chapter 8 Information and Distribution Systems Chapter 10
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Location Strategy
Customer Service
Communication Mix
Pricing
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Shopping Centers
Strip Shopping Centers Shopping Malls
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Types of Locations
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Advantage to Retailers:
Affluence returned Young professionals Returned empty-nesters Incentives to move provided by cities Jobs! Low occupancy costs High pedestrian traffic
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High security required Shoplifting Parking is poor Evenings and weekends are slow
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$580
$500
London
$400 $375
Madison Avenue (57th New York City to 72nd St.) Ave. des Champs Elysee Paris
$360
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Inner City
Inner city retailers achieve high sales volume, higher margins and higher profits
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Shopping Centers
Shopping Center Management Controls:
Parking Security Parking lot lighting Outdoor signage Advertising Special events for customers
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Onsite parking
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Power Centers
Big box stores Available parking Open air set up Many located near enclosed malls Large trade areas
PhotoLink/Getty Images
Free-standing stores
Low occupancy costs Limited small specialty stores
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Mall of America
Located near Minneapolis, MN Largest mall in the US Enough people to qualify as the third largest city in Minnesota Has more than 42 million visitors a year More people visit than Disney World, the Grand canyon and Graceland combined
Digital Vision/Getty Images
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Advantages:
Many different types of stores Many different assortments available Attracts many shoppers Main Street for todays shoppers Never worry about the weather Comfortable surrounding to shop Uniform hours of operation
Disadvantages:
Occupancy costs are high Tenants may not like mall management control of operations Competition can be intense
PhotoLink/Getty Images
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Challenge to Malls
Time pressured society makes it impractical to wander malls Fashion apparel sold in malls experiencing limited growth Malls are getting old and rundown unappealing to shop Anchor tenants are decreasing due to retail consolidation
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Lifestyle Centers
Photo provided by ICSC and used with permission of Aspen Grove Lifestyle Center
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Restoration Hardware
Barnes & Noble/Borders Pottery Barn The Gap Bed Bath & Beyond Eddie Bauer Ann Taylor Starbucks Aeropostale Hallmark Johnny Rockets Dicks Sporting Goods Panera Bread Coldwater Creek
Banana Republic
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Lifestyle Centers
Usually located in affluent residential neighborhoods
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Outlet Centers
These shopping centers contain mostly manufacturers and retail outlet stores
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Rent Traffic
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City
Strip
Center
Shopping
Mall
Free
Standing
+ +
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CBD
Strip
Center
Shopping
Mall
Free
Standing
+ -
+ + +
+ -
+ +
+ +
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+ + +
?
+ +
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+ ?
+ +
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control
Strong competition Tax incentives
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Royalty-Free/CORBIS
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Alternative Locations
Mixed Use Developments MXDs Hotels
Rob Melnychuk/Getty Images
Office Buildings
Civic Centers
D. Falconer/PhotoLink/Getty Images
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Alternative Locations
Airports
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Alternative Locations
Resorts
Royalty-Free/CORBIS
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Alternative Locations
Hospitals
Royalty-Free/CORBIS
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Shopping Situations
Convenience Shopping
Minimize the customers effort to get the product or service by locating store close to where customers are located
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Shopping Situations
Comparison Shopping
Customers have a good idea of what type of product they want, but dont have a strong preference for brand, model or retailer.
Typical for furniture, appliances, apparel, consumer electronics, hand tools and cameras.
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Category Specialists
Consumers can see almost all brands and models in one store
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Shopping Situations
Specialty Shopping
Customers know what they want Designer labels Convenient location matters less
The McGraw-Hill Companies, Inc./Andrew Resek, photographer
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Environmental Issues
Above-ground risks - such as asbestos-containing
materials or lead pipes used in construction.
Retailers Protection
Stipulate in the lease that the lessor is responsible for removal and disposal of this material if its found. Retailer can buy insurance that specifically protects it from these risks.
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Signs
Restrictions on the use of signs can also impact a particular sites desirability
Licensing Requirements
Some areas may restrict or require a license for alcoholic beverages