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Factors Affecting the Location of a Retailing Business - Coggle Diagram
Factors Affecting the Location of a Retailing Business
Shoppers
most retailers want an area which is popular, e.g. shopping mall/centre
type of shopper --> influences the attractiveness of the area to a particular type of retailers
nearby shops
locate near shops/businesses which are visited regularly --> lots of potential customers pass the shop
many competitors? can be positive/negative
lots of competition ppl want to go there bcs lots of options
no similar shops? people will likely go there
customer parking
where parking is convenient & nearby shops --> encourage shoppers to visit the area --> increase sales (possibly)
availability of suitable vacant premises
if suitable vacant shop/premises is not available --> business may not be able to locate in the area it wishes
rent/taxes
the more central the site of the premises --> higher rent&taxes
popular retail area --> high demand --> cost to rent higher
less popular site --> low demand --> cheaper cost
access for delivery vehicles
might be in consideration if it is very difficult for them to gain access to the premises
security
high rates of crime may deter a business from locating in that particular area
shopping area patrolled by guards might be preferable (even though more expensive)
legislation
there may be laws restricting the trading or marketing of goods in particular areas