RETAIL MANAGEMENT

Retail Locations
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Types of Retail Location.


Step involved in choosing a Retail Location.

Introduction

Define Store:

“A store is place , real or virtual , where the
shoppers comes to buy goods & services. The sales
transaction occurs at this junction.”


The location of retail store has for along time been

considered the most important ‘P’ in retailing.

Locating the retail store in the right place was considered to
be adequate for success.

q Location becomes a critical decision for a retailer for several reasons.
As like;
q
q Location is generally one of the most important factors customers
consider while choosing a store.
q
q A bad location may cause a retailer to fail even if its strategic mix is
excellent.. On the other hand , a good location may help a retailer
succeed even if its strategic mix is mediocre.
q
q Store location is least flexible element of retailer’s strategic mix due
to its fixed nature, the amount of investment, and the length of lease
agreements

Types of retail location
Various option are available to the retailer for choosing the
location of store.

The choice of the location of the store depends on the target
audience and the kind of merchandise to be sold.

A retailer has to choosing among alternate types of retail
locations available . It may locate in an isolated place and pull
the customer to the store on its own strength, such as a small
grocery store or paan shop in a colony which attracts the
customers staying close by

 Typically a store location may be:


1. Freestanding /Isolated store.

2.
3.Part of Business District/Centers (unplanned
Business Districts).
4.
5.Part of a Shopping Center (Planned Shopping
Centers)

Freestanding /Isolated store
Where there are no other outlets in the vicinity of the store and
therefore store depends on its own pulling power and
promotion to attracts customers.

A biggest advantages for freestanding stores is that there is no
competition around.

This type of location has several advantages including no
competition, low rent, often better visibility from the road,
easy parking and lower property .

Neighborhood Stores; colony shops serves small locality.
Highway Stores:Ebony store in Ludhiana .

Business Associated Location: These are location where a


group of retail outlets offering a variety of merchandise work

together to attract customers to their retail area, but also
compete against each other for the same customers. two types
includes in ;
1.
2.Part of Business District/Centers (unplanned Business
Districts).
3.
4.Part of a Shopping Center (Planned Shopping Centers)


Part of Business
District/Centers (unplanned
Business Districts).
A retail store can also be located as a part of a business district.
Or we can refer this as unplanned business centers

A business district is place of commerce in a city which
developed historically as the center of trade and commerce in
the city or town.

A business districts can be a central, secondary or a
Neighborhood business district.

A Central business District CBD is the main center of commerce
and trade in the city. (high land rates , intense development)


A CBD is the hub of retailing activity in a city.

CBD served different sections of population for Examples of
Cannaught place in Delhi, Colabain Mumbai, Commercial Street
and in Bangalore are up market CBD’s.

CBD’s serving the upper and upper middle class customers across
these cities like, chandani chowk in Delhi, Kalbadevi-Bhuleswar in
Mumbai, Chickpet in Bangalore.

Secondary Business District are composed of unplanned cluster of
store often located on a major intersection of city they a customers
from a large part of the city

Part of a Shopping Center
(Planned Shopping Centers)
A shopping center has been defined as “ a group of retail and
other commercial establishments that is planned , developed,
owned and managed as a single property”

The basic configuration of a shopping centre is a “Mall ” or
Strip centre.

A mall is typically enclosed and climate controlled. A walkway
is provided in front of the stores.

A strip centre is a row of stores with parking provided in the
front of the stores.
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In India we can planned shopping centre can categorize in two
category
Regional shopping centers or Mall: Regional shopping centers

or mall are the largest planned shopping centers..

Often they are anchored by two or more major department stores
have enclosed mall serve a large trading area and have high
rents. (ansal plaza,spencers plaza crossroads, DLF city in
Gurgaon)

Neighborhood/community/shopping centers: Neighborhood
/community centers usually have a balanced mix of stores
including a few grocery stores , a chemist, a verity store and a
few other stores selling convenience goods to the residents of
the neighborhood.

Step involved in choosing a
Retail Location
In order to arrive at the decision on where to locate the retail
store a retailer needs to first on the region that he wants to
locate the store.
After identifying the region the following steps Have to be
followed .
1. Identifying the market in which to locate the store.
2.
3. Evaluate the demand and supply within that market. i.e.
determine the market potential.
4.
5. Identify the most attractive sites
6.
7. Select the best site available

1. Market Identification:
The first step in arriving at a decision on retail location is to identify
the market attractiveness to a retailer.
This is important that retail needs to understand the market well.
2. Determining the market Potential::
The retailer need to take into consideration various elements as shown
in format. (features of population)
Demographic features of the population
The characteristics of the household in the area (average household
income)
Competition and compatibility (Need to know compatibility &
competition in market)
Laws & regulations:( good understanding of the laws
2.

Determining the market
Potential
Trade area analysis:
A trade area is the geographic area that generates the majority of the
customers for the store.

Primary trade area: primary trading covers between 50-80% of the
store’s customers.

Secondary Trading Area: this area contains the additional 15- to 25%
of the store’s customers.

Tertiary trading area covers the balance customers
These trading areas are dependent on distance and do not always have
to be concentric in nature

Types of Trade areas.

Presented by www.InfoFan.zcom Prepared by Dr.Pooja Sharma 17

3 & 4 Identify Alternate sites and select the site:
After taking decision on the location and market potential the

retailer has to select the site to locate the store based on these
Traffic
Accessibility of the market is also a key factor
The total number of stores and the type of store that exist in the
area
Amenities
To buy or to lease
The product mix to be offered by the retailer

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