Market and Retail Site

Selection
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?
Types of Retail Locations
UNPLANNED RETAIL LOCATIONS
! Freestanding Sites location for individual
store unconnected to other retailer
Advantages:
Convenience
High trac and visibility
Modest occupancy cost
Separation from competition
Few restrictions
UNPLANNED
City or Town Locations
! Central Business District
" Draws people into areas during business hours
" Hub for public transportation
" Pedestrian trac
" Residents
" High security required
" Shoplifting
" Parking is poor
" Evenings and weekends are slow
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SHOPPING CENTERS
! Group of retail and other commercial
establishments that are planned, developed
and managed as a single property
! CAM some ask to pay
! Anchors
! Most shopping centers have
at least one or two major
retailers
! Courted by developer
7-6
SHOPPING CENTERS
! Shopping Center Management
Controls:
! Parking
! Security
! Parking lot lighting
! Outdoor signage
! Advertising
! Special events for customers
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Types of Shopping Centers
! Neighborhood and Community Centers
Attached row
of stores
Managed as a
unit
Onsite parking
Types of Shopping Centers-
Shopping Mall
! enclosed, climate controlled, lighted shopping
centers with retailers on one or both sides of an
enclosed walkway.
Advantages and Disadvantages of
Shopping Malls
Advantages:
! Many dierent types of stores
! Many dierent assortments available
! Attracts many shoppers
! Main Street for todays shoppers
! Never worry about the weather
! Comfortable surrounding to shop
! Uniform hours of operation
Disadvantages:
" Occupancy costs are high
" Tenants may not like mall
management control of
operations
" Competition can be intense
! Usually located in auent residential neighborhoods
! Includes 50K sq. ft. of upscale chain specialty stores
! Open-air conguration
! Design ambience and amenities
! Upscale stores
! Restaurants and often a cinema or other
entertainment
! Small department store format may be there
Type of Shopping Centers
Lifestyle Center
Type of Shopping Center -
Outlet Center
! These shopping centers contain mostly
manufacturers and retail outlet stores
Type of Shopping Center
Theme/Festival Centers
! Shopping centers
with a unifying
theme
! Restaurant and
entertainment
Mixed Use Development
! Combine several dierent
uses into one complex
! Shopping center, oce
towers, hotels and
residential complex, civic
centers and convention
center.
10 Largest Shopping Centers in the
World (by GLA)
11: SM Megamall - 3.74 million sq ft - 1000+
stores
10. West Edmonton Mall - 3.77 million sq ft
800 stores
10 Largest Shopping Centers in the
World (by GLA)
9. Dubai Mall 3.77 million sq. ft 1,200 stores
but biggest in terms of land area 12.1 M sq. ft
10 Largest Shopping Centers in the
World (by GLA)
8. Mall Taman Anggrek (Indonesia) 3.9 M sq ft
526 stores
7. SM Mall of Asia 4.2 M sq ft
1080+ tenants

10 Largest Shopping Centers in the
World (by GLA)
6. Sunway Pyramid (Malaysia) 4.27 M sq. ft
-800+ stores

5. Midway Valley
(Malaysia)
4.5 M sq. ft
500+ stores

10 Largest Shopping Centers in the
World (by GLA)
4. erslan Gulf Complex (Iran) 4.8 M sq. ft
2500 stores


3. 1 Utama (Malaysla)
3 M sq. - 700+ sLores

10 Largest Shopping Centers in the
World (by GLA)
2. SM North Edsa 5.2 M sq. ft - 1,100 stores

1. Golden Resources Mall (China) 6 M sq. ft
1,300 stores
Other Retail Location
Opportunities
Airports
! Airports: Why wait with nothing to
do?
! Rents are 20% higher than malls
! Best airports are ones with many connecting
ights
Temporary Locations
! op-up sLores
! sLores ln Lemporary locauons LhaL
focus on newproducLs or a llmlLed
group of producLs.

Stores within Stores
! Department stores - leased space to other
retailers, such as sellers of ne jewelry, furs, or
high-end designer brands.
! Grocery stores - service providers like coee
bars, banks, lm processors, and medical
clinics.
" small temporary selling stations located in
walkways of enclosed malls, airports, train stations
or oce building lobbies.
Merchandise Kiosk
Resorts
! Captive audience
! Well-to-do customer
! Customers have time to shop
HOSPITALS
! Patients cannot leave
! Gifts are available