What are the 3 parts of retail locations?
- isolated store
- unplanned business district
- planned shopping center
What is an isolated store?
a freestanding retail outlet located on a street or highway, not sharing traffic with adjacent retailers
used by:
large format stores (Costco, Ikea)
convenience-oriented retailers (couche tard)
gas stations
What are the strengths and weakness of an isolated store?
strengths:
no direct competition
lower rental costs
easy parking
high visibility
weakness:
harder to attract customers
longer travel distance for shoppers
no cumulative attraction from nearby stores
higher advertising expenses
What is an unplanned business district?
a retail area where 2 or more stores are located near each other without long-term planning of the total store mix.
What are the 4 types of unplanned business district?
- central business district
- secondary business district
- neighbourhood business district
- string
What are the strengths and weaknesses of CBD?
strengths:
extremely high pedestrian traffic
diverse customer base
strong transportation access
wide assortment of goods and services
weaknesses:
high rent
traffic congestion
limited parking
increased competition
What is a central business district?
a retail hub of a city, known as downtown, it has the biggest concentration of buidings and stores
What is a secondary business district?
An unplanned shopping area usually located at the intersection of 2 major streets.
What are the strengths and weaknesses of SBD?
strengths:
lower rent then cbd
moderate traffic
good neighbourhood access
weaknesses:
smaller assortment
limited parking
less drawing power
What is a neighbourhood business district?
an unplanned shopping area serving convenience and services needs of residential neighbourhoods.
What are the strengths and weaknesses of NBD?
strengths:
close to customers
convenient shopping
loyal local clientele
weaknesses:
limited market size
small tarding area
dependant on local residents
What is a String?
an unplanned retail area where stores with similar or compatible product lines cluster along a street or highway.
What are the strengths and weaknesses of a string?
strengths:
strong comparison shopping
customers seeking a specific product type
high product category concentration
weaknesses:
high direct competition
price competition
dependent on product category demand
What is a planned shopping center?
a group of architecturally unified stores on centrally owned and managed property, a unit with parking facilities and balanced tenancy
or
A group of similar-looking stores in one place, owned and managed by one company, with parking and a mix of different types of stores.
What are the advantages and disadvantages of a planned shopping center?
Advantages:
balanced tenancy (retail stores balance)
one-stop shopping
parking
professional management
disadvantages:
high rent
strict lease terms
limited independance
mandatory operating hours
What are the 3 types of planned shopping centers?
- regional shopping center
- community shopping center
- neighbourhood shopping center
What is a regional shopping center?
a large planned shopping facility appealing to a geographically dispersed market (recreates a downtown shopping experience)
What are the strengths and weaknesses of a regional shopping center?
strengths:
broad and deep assortment
high customer traffic
weaknesses:
very high rent
high competition
high operating costs
What is a community shopping center?
a moderate-sized planned shopping facility with a branch departement store or category killer and several smaller stores.
strengths:
moderate rent compared to regional centers
good assortment
strong anchors
weaknesses:
smaller trading area than regional
moderate competition
What are the 2 types of community centers?
- power center
200,000 - 400,000 square feet
located near highways
compete with regional centers - lifestyle center
150,000- 500,000 square feet
open-air format
upscale specialty stores
What is a neighbourhood shopping center?
a planned shopping facility servivng one neighbourhood, the largest store being a supermarket.
What are the strengths and weaknesses of neighbourhood shopping centers?
strengths:
close to residents
convenience shopping
weaknesses:
limited market size
small trading area
What are the 7 key evaluation factors on location and site?
- Pedestrian traffic
- Vehicular traffic
- Parking facilities
- Transportation access
- Store composition
- Specific space (size, layout, visibility)
- Terms of occupancy (lease terms, costs, restrictions)
What is affinity?
a store’s attraction to an area because it complements and cooperates with nearby stores.
if affinity is strong, then all stores benefit.
ex: clothing store near a shoe store
