FASHION RETAIL INDUSTRY Retailing Management 8th Edition Levy Weitz Chapter 7 Retail Locations Choosing retail location involves evaluating tradeoffs between Size Occupancy costs Traffic Store operation restrictions Convenience Three Types of Locations 1 Free Standing 2 City Town Business District 3 Shopping Center Mall TRADE AREA geographic area that encompasses most customers who would patronize a specific retail site FREE STANDING retail location for individual isolated store unconnected to other retailers may be near other free standing stores convenience higher vehicular traffic visibility modest occupancy costs few operation restrictions limited trade area OUTPARCELS stores not connected to other stores in a shopping center but located on the same premises CITTY TOWN suburban urban locations lower occupancy costs high pedestrian traffic in business districts vehicular traffic limited parking issues reduce convenience GENTRIFICATION renewal rebuilding of old offices housing and or retailers in deteriorating areas causing an influx of affluent people displacing the poorer people CENTRAL BUSINESS DISTRICT CBD traditional downtown business area in a city town high level of public transport and pedestrian traffic large number of residents limited parking and longer driving reduce convenience shoplifting suffer from lack of planning MAIN STREET traditional shopping area in smaller towns or secondary business district in a suburb or larger city same characteristics as CBD but with lower occupancy costs do not draw as many people less entertainment INNER CITY high density urban area higher unemployment lower median income that surrounding metro areas some retailers refuse to open in inner cities so residents must drive to nearby suburb reduced convenience SHOPPING CENTER groups of retailers and other commercial establishments that re planned developed owned and managed by a single property proved comprehensive shopping experience well thought out format COMMON AREA OF MAINTENANCE CAM shopping center management maintains common facilities such as parking security signage advertising special events etc ANCHORS major retailers within a shopping center STRIP SHOPPING CENTERS attached rows of non enclosed stores with one site parking linear layout is most common convenience parking low occupancy costs limited trade area lack of entertainment and restaurants POWER CENTERS shopping centers that consist primary of collections of big box retailers open air several free standing anchors located near shopping malls SHOPPING MALLS enclosed climate controlled shopping centers with retail stores on both sides of the walk way attract many customers large trade area combine shopping entertainment high pedestrian traffic because customers don t have to worry about weather management ensures consistency higher occupancy costs restrictions on operations and competition in close proximity REGIONAL less than 800 000 sq ft SUPERREGIONAL more than 800 000 sq ft LIFESTYLE CENTERS shopping centers that have an open air configuration of specialty stores entertainment and restaurants with design and ambiance amenities bad weather impedes traffic less retail space convenient lower occupancy costs than enclosed malls MIXED USE DEVELOPMENTS combine several uses into one location complex such as retail offices residential hotels recreation etc OUTLET CENTERS shopping centers mostly contain manufacturer and retailer outlet stores lower occupancy costs convenient interstate access tourism generates most traffic THEME FESTIVAL CENTERS shopping centers typically employ a unifying theme in shapes design architecture and merchandise biggest appeal to tourists anchored by restaurants and entertainment facilities OMNICENTERS new shopping center development combing enclose malls lifestyle centers and power centers reflect growing tendency of customers to cross shop POP UP STORES stores in temporary locations that focus on new products or limited groups of products MERCHANDISE KIOSKS small selling space typically located in the walkways of enclosed mall airports college campuses office lobbies vending machine kiosks airports high in pedestrian traffic CONSUMER SHOPPING BEHAVIORS Consumer shopping behaviors affect location choice 2 COMPARISON SHOPPING 1 CONVENIENCE SHOPPING consumer is concerned with minimizing effort to get product service and relatively insensitive to price want to make purchases quickly and easily i e freestanding strip centers more info purchase decision more important to them than convenience shoppers i e enclosed malls consumers know what they want and will not accept a substitute brand retailer loyal and will pay premium price expend extra effort to get what they want consumer has general idea of type of product service and seeks 3 SPECIALTY SHOPPING DESTINATION STORES category specialist retailers consumers go to even if it is not convenient LOCATION LEGAL CONSIDERATIONS Environmental sustainability issues above ground risks hazardous in ground risks Zoning building codes restrictions specify building signs size type parking lot etc allowed at a particular location licensing requirements etc