STORE LOCATION AND

SITE EVALUATION
 LOCATION VS
SITE
LOCATION IS A BRODER CONCEPT WHICH
DENOTES THE STORE AND ITS AREA FROM
WHERE A MAJORITY OF CUSTOMERS
ORIGNATE .

A SITE REFERS TO THE SPECIFIC BUILDING

OR PART OF THE BUILDING IS LOCATED.

YOU CAN HAVE A GOOD LOCATION BUT A

BAD SITE.
 LOCATION
LOCATE IN HASTE REPENT AT LEISURE
COMPETITIVE ADVANTAGE
LOCATION IS THE PRIME CONSIDERATION IN
A CUSTOMERS STORE CHOICE

LOCATION IS A MAJOR COST FACTOR-

a) INVOLVES LARGE CAPITAL INVESTMENT
b) AFFECTS TRANSPORTATION COST
c) AFFECTS HR COSTS

LOCATION IS A MAJOR REVENUE FACTOR

a) IT EFFECTS THE CUSTOMER TRAFFIC
b) VOLUME OF BUSINESS
 L EVELS OF LOCATION
DECISION
SELECTION OF CITY
SELECTION OF AREA, OR
LOCATION WITHIN A CITY
IDENTIFICATION OF A Specific
SITE
 SELECTION OF CITY
Size of the city trading area
Population growth in the trading area
Total purchasing power and its
distribution.
Total retail trade potential for different
lines of trade- a city might become a
specialist in certain line of trade and
attract customers from other cities.
 Number and quality of
competition
Development cost
Hub and spoke concept
 Selection of an area or
type of location within a
city
Customer attraction power of
shopping district.
Competitive store
Availability of access routes
Nature of zoning regulations
Direction of the spread of the
city
 Types of retail locations

Freestanding sites/ isolated

stores
There are no other retail outlet
in the vicinity of the store
therefore the store depends on
its own pulling power and
promotion to attract customers.
 Advantages &
disadvantages
No competition Difficulty in
in close attracting customers.
proximity. If far people will not
Rental cost low travel
Cost such as lighting
No group rules
security trash all has
to be followed to be borne alone
Large space Store may have to be
Easy parking built not rented
 Business associated
location
Where a group of retail outlets
offering a variety of merchandize
work together to attract customers
to their retail area, but also
compete with each other for the
same customer. They are further
classified as-
(A) unplanned business district
(B) planned shopping center
 Unplanned business
districts
An unplanned business district is a
retail location where two or more
stores locate together or in close
proximity in such a way that the
total arrangement is a mix of stores
is not due to proper long run
planning,
Stores based on what is best for
them and not for the district.
 Central business
district
Is the hub of retailing.
Is synonymous with down town.
They draw people from far flung
places
Depending on the city area can
be more than one CBD
 Advantages and
disadvantages
Public Traffic
transport Parking
Variety of
stores,
Frail
services, conditions of
products stores
Customers High rent
 Secondary business
district
Unplanned shopping area in a
city or town that is usually
located on a major intersection
of a city.
SBD is smaller than that of CBD
 Neighborhood Business
District
Appeals to single residential area
.
 STRINGS

An group of retailers located

near a highway or isolated place.
Starts as an isolated venture and
grows as more stores come in to
form a string.
 The planned shopping
center
Consists of a group of
architecturally owned or
managed stores designed &
operated as a unit based on
balanced tenancy & surrounded
by parking facility.
Size & mix depends on the type
of trading area.
 ADVANTAGES

Well rounded assortments of

goods and services based on
long range of planning
One stop family shopping
Cooperative planning and cost
sharing
parking
 REGIONAL SHOPPING
CENTER
Large planned shopping centers,
serves large trading area, high
rent, food court and
entertainment facility.
 NEIGHBORHOOD
SHOPPING CENTER
Moderate size, attract the
neighborhood, start planned and
then become unplanned .
 SPECIALIZED MARKET

Market famous for a particular

product categories.
 Site selection
Adequacy and potential traffic
passing the store.
Complimentary nature of
adjacent store.
Parking
Accessibility
Visibility
cost
 TRADE AREA

Is the geographic area from

where a retailer draws majority
of its customers.
Primary zone derives 60-65%
Secondary zone- 30-35%
Tertiary zone- 10-15%
Anchor and parasite
stores