Please enable JavaScript.
Coggle requires JavaScript to display documents.
RETAIL SITE LOCATION - Coggle Diagram
RETAIL SITE LOCATION
The characteristics of the trading area
Factors Affecting the Size of the Trade Area
Trade Area Definition
Measuring the Trade Area for a Retail Site
Sources of Information about the Trade Area
Competition in the Trade Area
Factors when evaluating specific areas for locations
Competition
Level of competition affects the demand
Walmart’s early success was base on location strategy of opening stores in small towns with little competition
Cost of operating stores
Vary across areas
The population of the area
Local and state regulatory environment has effect
Strategic Fit with Target Market
Demographic (household type, income, age, and ethnicity), lifestyle profile, size and composition of households in an area
Area needs to have consumers in the retailer’s target market
Economic Conditions
The level and growth of population and employment
How long the growth will continue
, and
how it will effect demand for merchandise sold in stores
Number of stores to open in an area
Economies of Scale
Cannibalization
Evaluating a Site
for Locating a Retail Store
Considers
Site characteristics
The estimated
potential sales
that can be generated
Traffic Flow and Accessibility
Important for retailers
offering merchandise and services bought
on impulse, not necessary
for destination retailers
Too much can
impede access
to store
Accessibility
to store is as important as traffic flow, that is the ease with which customers can get in and out
Locations Characteristics
Parking Space
Consider
Congestion
Visibility
Amount and quality of parking facilities
Employee parking availability
Parking by non-shoppers
Typical length of shopping trip
Restrictions and costs
Locations within a Shopping Center
ESTIMATING POTENTIAL SALES FOR A STORE SITE