the objective of this chapter :
•To thoroughly examine the types of locations available to a retailer: isolated stores, unplanned business
districts, and planned shopping centers
•To note the decisions necessary in choosing a general retail location
•To describe the concept of one-hundred percent location
Three Types of Locations
- Isolated Store
- Planned Shopping Center
- Unplanned Business District
Isolated Stores
Advantages
•No direct competition
•Low rental costs
•Flexibility
•Good for convenience stores
•High visibility
•Adaptable facilities
•Easy parking
•Excellent for store that generates own traffic
Disadvantages
•Difficulty attracting customers
•Travel distance
•Lack of cumulative attraction for customers
•High advertising expenses
•No cost sharing for promotions
•Possibly restrictive zoning laws
Planned Shopping Centers
Advantages
•Well-rounded assortments
•Strong suburban population
•One-stop, family shopping
•Cost sharing of promotions
•Transportation access
•Pedestrian traffic
Disadvantages
•Limited flexibility
•Higher rent
•Restricted product offerings in lease
•Competition
•Requirements for association memberships
•Domination by anchor stores
•Impact of store closings on affinities
Types of Leases
- Straight
- Maintenance-Increase Recoupment
- Net
- Graduated
- Percentage
No comments:
Post a Comment