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Chapter 4,Retail Locations,7-2,Elements in Retail Mix,Location Strategy,7-3,What Are the Three Most Important Things in Retailing?,Location! Location! Location!,Eddie Tan/Life File/Getty Images,7-4,Why is Store Location Important for a Retailer?,Location is typically prime consideration in customers store choice.Location decisions have strategic importance because they can help to develop sustainable competitive advantage.Location decisions are risky: invest or lease?,F. Schussler/PhotoLink/Getty Images,7-5,Types of Retail Locations,Free Standing SitesCity or Town LocationsInner CityMain StreetShopping CentersStrip Shopping CentersShopping MallsOther Location Opportunities,PhotoLink/Getty Images,7-6,Unplanned Retail Locations,Freestanding Sites location for individual store unconnected to other retailer Advantages: Convenience High traffic and visibility Modest occupancy cost Separation from competition Few restrictions,The McGraw-Hill Companies, Inc./Andrew Resek, photographer,JCPenney, Sears, Walgreens are shifting to stand alone locations,7-7,Unplanned Retail Locations,Merchandise Kiosks small temporary selling stations located in walkways of enclosed malls, airports, train stations or office building lobbies.,Kent Knudson/PhotoLink/Getty Images,7-8,City or Town Locations,Gentrification is bringing population back to the cities.,The McGraw-Hill Companies, Inc./Andrew Resek, photographer,Advantage to Retailers:Affluence returnedYoung professionalsReturned empty-nestersIncentives to move provided by citiesJobs!Low occupancy costsHigh pedestrian traffic,7-9,Central Business District,Draws people into areas during business hoursHub for public transportationPedestrian trafficResidents High security requiredShopliftingParking is poorEvenings and weekends are slow,Advantages,Disadvantages,Spike Mafford/Getty Images,7-10,The Most Expensive Shopping Streets in the World,7-11,Inner City,Inner city retailers achieve high sales volume, higher margins and higher profits,(c) Brand X Pictures/PunchStock,Unmet demand tops 25% in many inner city markets,Inner city customer wants branded merchandise,7-12,Shopping Centers,Shopping Center Management Controls:ParkingSecurityParking lot lightingOutdoor signageAdvertisingSpecial events for customers,The McGraw-Hill Companies, Inc./Andrew Resek, photographer,7-13,Types of Shopping Centers,Neighborhood and Community Centers (Strip Centers)Power CentersEnclosed MallsLifestyle CentersFashion Specialty CentersOutlet Centers,7-14,Neighborhood and Community Centers,Attached row of stores,Managed as a unit,Onsite parking,The McGraw-Hill Companies, Inc./Andrew Resek, photographer,7-15,Power Centers,Big box stores,PhotoLink/Getty Images,Limited small specialty stores,Free-standing stores,Open air set up,Available parking,Desirable shopping experience,Many located near enclosed malls,Large trade areas,Low occupancy costs,Convenient,Modest vehicular and pedestrian traffic,7-16,The Largest North American Shopping Malls,7-17,Mall of America,Located near Minneapolis, MNLargest mall in the USEnough people to qualify as the third largest city in MinnesotaHas more than 42 million visitors a yearMore people visit than Disney World, the Grand canyon and Graceland combined,Digital Vision/Getty Images,7-18,Advantages and Disadvantages of Shopping Malls,Advantages:Many different types of storesMany different assortments availableAttracts many shoppersMain Street for todays shoppersNever worry about the weatherComfortable surrounding to shopUniform hours of operation,Disadvantages:Occupancy costs are highTenants may not like mall management control of operationsCompetition can be intense,PhotoLink/Getty Images,7-19,Challenge to Malls,Time pressured society makes it impractical to wander mallsFashion apparel sold in malls experiencing limited growthMalls are getting old and rundown unappealing to shopAnchor tenants are decreasing due to retail consolidation,7-20,Lifestyle Centers,Courtesy of General Growth Properties,Photo provided by ICSC and used with permission of Aspen Grove Lifestyle Center,7-21,Stores and Restaurants at Lifestyle Centers,Starbucks,Panera Bread,Bed Bath & Beyond,Ann Taylor,Victorias Secret,Eddie Bauer,Coldwater Creek,Banana Republic,The Gap,Restoration Hardware,Williams-Sonoma,Pottery Barn,Barnes & Noble/Borders,Dicks Sporting Goods,Aeropostale,Hallmark,Johnny Rockets,7-22,Lifestyle Centers,Usually located in affluent residential neighborhoodsIncludes 50K sq. ft. of upscale chain specialty storesOpen-air configuration Design ambience and amenitiesUpscale storesRestaurants and often a cinema or other entertainment Small department store format may be there,7-23,Fashion Specialty Centers,Upscale apparel shopsNeed to be anchoredDcor is elegant,The McGraw-Hill Companies, Inc./Lars A. Niki, photographer,7-24,Outlet Centers,These shopping centers contain mostly manufacturers and retail outlet stores,Courtesy of Bealls, Inc.,7-25,Tradeoff Between Locations,Rent,Traffic,There are relative advantages and disadvantages to consider with each location.,7-26,Relative Advantages of Major Retail Locations,7-27,Relative Advantages of Major Retail Locations,7-28,Relative Advantages of Major Retail Locations,7-29,Other Retail Location Opportunities,AirportsResorts HospitalsStore within a Store,Royalty-Free/CORBIS,7-30,Alternative LocationsAirports,Airports: Why wait with nothing to do?Rents are 20% higher than mallsSales/sqft are 3-4 times higher than mallsBest airports are ones with many connecting flights,Kim Steele/Getty Images,7-31,Alternative LocationsResorts,Captive audienceWell-to-do customerCustomers have time to shop,Royalty-Free/CORBIS,7-32,Alternative LocationsHospitals,Patients cannot leaveGifts are available,Royalty-Free/CORBIS,7-33,Matching Location to Retail Strategy,Department Stores Regional MallSpecialty Apparel Central Business District, Regional Malls Category Specialists Power Centers, Free StandingGrocery Stores Strip Shopping CentersDrug Stores Stand Alone,7-34,Shopping SituationsConvenience Shopping,Minimize the customers effort to get the product or service by locating store close to where customers are located,The McGraw-Hill Companies, Inc./Andrew Resek, photographer,7-35,Shopping SituationsComparison Shopping,Customers have a good idea of what type of product they want, but dont have a strong preference for brand, model or retailer.,Ryan McVay/Getty Images,Typical for furniture, appliances, apparel, consumer electronics, hand tools and cameras.,7-36,Environmental Issues,“Above-ground” risks - such as asbestos

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