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Market and Retail Site Selection

Why is Store Location Important for a Retailer? ¤   Location is typically prime consideration

Why is Store Location Important for a Retailer?

¤ Location is typically prime consideration in customer’s 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

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

AdvantagesDisadvantages

UNPLANNED City or Town Locations

AdvantagesDisadvantages UNPLANNED City or Town Locations ¤   Central Business District ¦   Draws people into

¤ 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

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

SHOPPING CENTERS

¤ Shopping Center Management Controls:

¤ Parking ¤ Security ¤ Parking lot lighting ¤ Outdoor signage ¤ Advertising ¤ Special events for customers

Spike Mafford/Ge/y Images

Types of Shopping Centers

Types of Shopping Centers ¤   Neighborhood and Community Centers Managed as a unit Attached row

¤ Neighborhood and Community Centers

Managed as a unit

of Shopping Centers ¤   Neighborhood and Community Centers Managed as a unit Attached row of
of Shopping Centers ¤   Neighborhood and Community Centers Managed as a unit Attached row of
of Shopping Centers ¤   Neighborhood and Community Centers Managed as a unit Attached row of

Attached row

of Shopping Centers ¤   Neighborhood and Community Centers Managed as a unit Attached row of

of stores

Onsite parking

Types of Shopping Centers- Shopping Mall

Types of Shopping Centers- Shopping Mall with retailers ¤   enclosed, climate controlled, lighted shopping centers
Types of Shopping Centers- Shopping Mall with retailers ¤   enclosed, climate controlled, lighted shopping centers
Types of Shopping Centers- Shopping Mall with retailers ¤   enclosed, climate controlled, lighted shopping centers
Types of Shopping Centers- Shopping Mall with retailers ¤   enclosed, climate controlled, lighted shopping centers
Types of Shopping Centers- Shopping Mall with retailers ¤   enclosed, climate controlled, lighted shopping centers
Types of Shopping Centers- Shopping Mall with retailers ¤   enclosed, climate controlled, lighted shopping centers

with retailers

¤ enclosed, climate controlled, lighted shopping

centers

enclosed walkway.

on one or both sides of an

Advantages and Disadvantages of Shopping Malls

Advantages:

Advantages and Disadvantages of Shopping Malls Advantages: ¤   Many di ff erent types of stores

¤ Many dierent types of stores ¤ Many dierent assortments available ¤ Attracts many shoppers ¤ Main Street for today’s shoppers ¤ Never worry about the weather ¤ Comfortable surrounding to shop ¤ Uniform hours of operation

Disadvantages:

Disadvantages:

Disadvantages:
Disadvantages:
Disadvantages:
Disadvantages:

¦ Occupancy costs are high ¦ Tenants may not like mall

management control of operations ¦ Competition can be intense

Type of Shopping Centers Lifestyle Center

¤ Usually located in auent residential neighborhoods

Usually located in a ffl uent residential neighborhoods ¤   Includes 50K sq. ft. of upscale
Usually located in a ffl uent residential neighborhoods ¤   Includes 50K sq. ft. of upscale
Usually located in a ffl uent residential neighborhoods ¤   Includes 50K sq. ft. of upscale
Usually located in a ffl uent residential neighborhoods ¤   Includes 50K sq. ft. of upscale
Usually located in a ffl uent residential neighborhoods ¤   Includes 50K sq. ft. of upscale
Usually located in a ffl uent residential neighborhoods ¤   Includes 50K sq. ft. of upscale
Usually located in a ffl uent residential neighborhoods ¤   Includes 50K sq. ft. of upscale

¤ Includes 50K sq. ft. of upscale chain specialty

¤ Open-air configuration

¤ Design ambience and amenities

¤ Upscale stores

¤ Restaurants and often a cinema or other entertainment

¤ Small department store format may be there

stores

Type of Shopping Center - Outlet Center

Type of Shopping Center - Outlet Center ¤   These shopping centers contain mostly manufacturers and
Type of Shopping Center - Outlet Center ¤   These shopping centers contain mostly manufacturers and
Type of Shopping Center - Outlet Center ¤   These shopping centers contain mostly manufacturers and
Type of Shopping Center - Outlet Center ¤   These shopping centers contain mostly manufacturers and
Type of Shopping Center - Outlet Center ¤   These shopping centers contain mostly manufacturers and
Type of Shopping Center - Outlet Center ¤   These shopping centers contain mostly manufacturers and

¤ These shopping centers contain mostly

of Shopping Center - Outlet Center ¤   These shopping centers contain mostly manufacturers and retail

manufacturers and

retail outlet stores

Type of Shopping Center – Theme/Festival Centers

¤ Shopping centers

with

a unifying

theme ¤ Restaurant and entertainment

Center – Theme/Festival Centers ¤   Shopping centers with a unifying theme ¤   Restaurant and
Center – Theme/Festival Centers ¤   Shopping centers with a unifying theme ¤   Restaurant and
Center – Theme/Festival Centers ¤   Shopping centers with a unifying theme ¤   Restaurant and
Center – Theme/Festival Centers ¤   Shopping centers with a unifying theme ¤   Restaurant and
Center – Theme/Festival Centers ¤   Shopping centers with a unifying theme ¤   Restaurant and
Center – Theme/Festival Centers ¤   Shopping centers with a unifying theme ¤   Restaurant and

Mixed Use Development

Mixed Use Development ¤   Combine several di ff erent uses into one complex ¤  
Mixed Use Development ¤   Combine several di ff erent uses into one complex ¤  
Mixed Use Development ¤   Combine several di ff erent uses into one complex ¤  
Mixed Use Development ¤   Combine several di ff erent uses into one complex ¤  
Mixed Use Development ¤   Combine several di ff erent uses into one complex ¤  
Mixed Use Development ¤   Combine several di ff erent uses into one complex ¤  
Mixed Use Development ¤   Combine several di ff erent uses into one complex ¤  

¤ 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)

10 Largest Shopping Centers in the World (by GLA) 11: SM stores 10. West Edmonton Mall
10 Largest Shopping Centers in the World (by GLA) 11: SM stores 10. West Edmonton Mall
10 Largest Shopping Centers in the World (by GLA) 11: SM stores 10. West Edmonton Mall
10 Largest Shopping Centers in the World (by GLA) 11: SM stores 10. West Edmonton Mall
10 Largest Shopping Centers in the World (by GLA) 11: SM stores 10. West Edmonton Mall
10 Largest Shopping Centers in the World (by GLA) 11: SM stores 10. West Edmonton Mall

11: SM

stores 10. West Edmonton Mall - 3.77 million sq ft – 800 stores

(by GLA) 11: SM stores 10. West Edmonton Mall - 3.77 million sq ft – 800

Megamall - 3.74 million sq ft - 1000+

10 Largest Shopping Centers in the World (by GLA)

sq. ft – 1,200 stores
sq. ft – 1,200 stores

9. Dubai Mall – 3.77 million

the World (by GLA) sq. ft – 1,200 stores 9. Dubai Mall – 3.77 million but

but biggest in terms of land area 12.1 M sq. ft

the World (by GLA) sq. ft – 1,200 stores 9. Dubai Mall – 3.77 million but

10 Largest Shopping Centers in the World (by GLA)

8. Mall Taman Anggrek (Indonesia) – 3.9 M sq ft – 526 stores 7. SM
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)
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)

10 Largest Shopping Centers in the World (by GLA) 4. Persi an Gulf Complex (Iran) 4.8
10 Largest Shopping Centers in the World (by GLA) 4. Persi an Gulf Complex (Iran) 4.8
10 Largest Shopping Centers in the World (by GLA) 4. Persi an Gulf Complex (Iran) 4.8
10 Largest Shopping Centers in the World (by GLA) 4. Persi an Gulf Complex (Iran) 4.8
10 Largest Shopping Centers in the World (by GLA) 4. Persi an Gulf Complex (Iran) 4.8
10 Largest Shopping Centers in the World (by GLA) 4. Persi an Gulf Complex (Iran) 4.8
10 Largest Shopping Centers in the World (by GLA) 4. Persi an Gulf Complex (Iran) 4.8

4. Persi an Gulf Complex (Iran) 4.8 M sq. ft 2500 stores

3. 1 Utama (Malaysia) 5 M sq. 5 – 700+ stores

(by GLA) 4. Persi an Gulf Complex (Iran) 4.8 M sq. ft 2500 stores 3. 1

10 Largest Shopping Centers in the World (by GLA)

10 Largest Shopping Centers in the World (by GLA) 2. SM North Edsa – 5.2 M

2. SM North Edsa – 5.2 M sq. ft - 1,100 stores

(by GLA) 2. SM North Edsa – 5.2 M sq. ft - 1,100 stores 1. Golden

1. Golden Resources 1,300 stores

Mall (China) 6 M sq. ft –

Other Retail Location Opportunities
Other Retail Location Opportunities
Other Retail Location Opportunities
Other Retail Location Opportunities
Other Retail Location Opportunities
Other Retail Location Opportunities
Other Retail Location Opportunities

Other Retail Location Opportunities

Airports
Airports
¤  Airports: Why do? wait with nothing to ¤  Rents are 20% higher than malls
¤  Airports: Why
do?
wait with nothing to
¤  Rents are 20% higher than malls
¤  Best
airports are ones with many connecting
flights

Temporary Locations

¤ Pop-up stores ¤ stores in temporary loca?ons that focus on newproducts or a limited group of products.

¤   Pop-up stores ¤   stores in temporary loca?ons that focus on newproducts or a
¤   Pop-up stores ¤   stores in temporary loca?ons that focus on newproducts or a
¤   Pop-up stores ¤   stores in temporary loca?ons that focus on newproducts or a
¤   Pop-up stores ¤   stores in temporary loca?ons that focus on newproducts or a
¤   Pop-up stores ¤   stores in temporary loca?ons that focus on newproducts or a
¤   Pop-up stores ¤   stores in temporary loca?ons that focus on newproducts or a
¤   Pop-up stores ¤   stores in temporary loca?ons that focus on newproducts or a

Stores within Stores

Stores within Stores ¤   Department stores - leased space to other retailers, such as sellers
Stores within Stores ¤   Department stores - leased space to other retailers, such as sellers
Stores within Stores ¤   Department stores - leased space to other retailers, such as sellers
Stores within Stores ¤   Department stores - leased space to other retailers, such as sellers
Stores within Stores ¤   Department stores - leased space to other retailers, such as sellers
Stores within Stores ¤   Department stores - leased space to other retailers, such as sellers

¤ Department stores - leased space to other retailers, such as sellers of fine jewelry, furs, or high-end designer brands. ¤ Grocery stores - service providers like coee

brands. ¤   Grocery stores - service providers like co ff ee bars, banks, film processors,

bars, banks, film processors, and medical clinics.

Merchandise Kiosk

Merchandise Kiosk ¦   small temporary selling stations located in walkways of enclosed malls, airports, train

¦ small

Merchandise Kiosk ¦   small temporary selling stations located in walkways of enclosed malls, airports, train

temporary selling stations located in

walkways of enclosed malls, airports, train stations

or oce building lobbies.

temporary selling stations located in walkways of enclosed malls, airports, train stations or o ffi ce

Resorts

Resorts ¤   Captive audience ¤   Well-to-do customer ¤   Customers have time to shop
Resorts ¤   Captive audience ¤   Well-to-do customer ¤   Customers have time to shop
Resorts ¤   Captive audience ¤   Well-to-do customer ¤   Customers have time to shop
Resorts ¤   Captive audience ¤   Well-to-do customer ¤   Customers have time to shop
Resorts ¤   Captive audience ¤   Well-to-do customer ¤   Customers have time to shop
Resorts ¤   Captive audience ¤   Well-to-do customer ¤   Customers have time to shop
Resorts ¤   Captive audience ¤   Well-to-do customer ¤   Customers have time to shop

¤ Captive audience ¤ Well-to-do customer ¤ Customers have time to shop

HOSPITALS

¤ Patients cannot leave

¤ Gifts

are available

HOSPITALS ¤   Patients cannot leave ¤   Gifts are available
HOSPITALS ¤   Patients cannot leave ¤   Gifts are available
HOSPITALS ¤   Patients cannot leave ¤   Gifts are available
HOSPITALS ¤   Patients cannot leave ¤   Gifts are available
HOSPITALS ¤   Patients cannot leave ¤   Gifts are available
HOSPITALS ¤   Patients cannot leave ¤   Gifts are available