Retail Management hajjaa hahahaha hahahaha hahhahahahah hahahshagaggava

Hshahauausuuwwususushahhahahahhah

1. RETAIL MANAGEMENT
BBA -6
th
Semester
BBA-605 ( M-3)
UNIT-4
Dr. Deepak Sharma

2. Retail Location Selection: Importance of
Retail locations
Types of retail locations
Factors determining the location decision
Steps involved in choosing a retail
locations
Measurement of success of location
UNIT –4 Syllabus

3. Retail Management -Business Location
Siliconvalleyisamindset;notalocation.
−ReidHoffman(Co-Founder,LinkedIn)
Beforevisitingamallorashop,thefirstquestionthatarisesin
consumers’mindis,“HowfardoIhavetowalk/drive?”
InpopulouscitiessuchasMumbai,Delhi,Tokyo,andShanghaito
nameafew,consumersfacerush-hourtrafficjamsorjamsbecauseof
roadstructure.Insuchcases,toaccessaretailoutlettoprocureday-
to-dayneedsbecomesverydifficult.Itisveryimportantforthe
consumerstohaveretailstoresnearwheretheystay.

4. ImportanceofLocationinRetailBusiness
Retailstorelocationisalsoanimportantfactorforthemarketingteamtoconsider
whilesettingretailmarketingstrategy.Herearesomereasons−
Businesslocationisauniquefactorwhichthecompetitorscannotimitate.
Hence,itcangiveastrongcompetitiveadvantage.
Selectionofretaillocationisalong-termdecision.
Itrequireslong-termcapitalinvestment.
Goodlocationisthekeyelementforattractingcustomerstotheoutlet.
Awell-locatedstoremakessupplyanddistributioneasier.
Locationscanhelptochangecustomers’buyinghabits.

5. TradeArea:TypesofBusinessLocations
Atradeareaisanareawheretheretailerattractscustomers.Itisalso
calledcatchmentarea.Therearethreebasictypesoftradeareas−
SolitarySites
Thesearesingle,freestandingshops/outlets,whichareisolatedfromotherretailers.
Theyarepositionedonroadsornearotherretailersorshoppingcenters.Theyare
mainlyusedforfoodandnon-foodretailing,orasconvenienceshops.Forexample,
kiosks,mom-andpopstores(similartokiranastoresinIndia).
Advantages−Lessoccupancycost,awayfromcompetition,lessoperation
restrictions.
Disadvantages−Nopedestriantraffic,lowvisibility

6. UnplannedShoppingAreas
Theseareretaillocationsthathaveevolvedovertimeandhave
multipleoutletsincloseproximity.Theyarefurtherdividedas−
Centralbusinessdistrictssuchastraditional“downtown”areas
incities/towns.
Secondarybusinessdistrictsinlargercitiesandmainstreetor
highstreetlocations.
Neighborhooddistricts.
Locationsalongastreetormotorway(Striplocations).

7. Advantages− High pedestrian traffic during business hours, high resident traffic, nearby
transport hub.
Disadvantages− High security required, threat of shoplifting, Poor parking facilities.

8. PlannedShoppingAreas
Theseareretaillocationsthatarearchitecturallywell-plannedtoprovideanumber
ofoutletspreferablyunderatheme.Thesesiteshavelarge,keyretailbrandstores
(alsocalled“anchorstores”)andafewsmallstorestoadddiversityandelevate
customers’interest.Therearevarioustypesofplannedshoppingcenterssuchas
neighborhoodorstrip/communitycenters,malls,lifestylecenters,specialtycenters,
outletcenters.
Advantages− High visibility, high customer traffic, excellent parking
facilities.
Disadvantages− High security required, high cost of occupancy.

9. Factors Determining Retail Locations
Themarketingteammustanalyzeretaillocationwithrespecttothefollowing
issues−
SizeofCatchmentArea−Primary(with60to80%customers),Secondary(15
to25%customers),andTertiary(withremainingcustomerswhoshop
occasionally).
OccupancyCosts−Costsoflease/owningaredifferentindifferentareas,
propertytaxes,locationmaintenancecosts.
CustomerTraffic−Numberofcustomersvisitingthelocation,numberof
privatevehiclespassingthroughthelocation,numberofpedestriansvisitingthe
location.
RestrictionsPlacedonStoreOperations−Restrictionsonworkinghours,
noiseintensityduringmediapromotionevents.
LocationConvenience−Proximitytoresidentialareas,proximitytopublic
transportfacility.

10. Steps to Choose the Right Retail Location
A retail company needs to follow the given steps for choosing the right location −

11. Step1-Analyzethemarketintermsofindustry,product,andcompetitors−
Howoldisthecompanyinthisbusiness?Howmanysimilarbusinessesarethere
inthislocation?Whatthenewlocationissupposedtoprovide:newproductsor
newmarket?Howfaristhecompetitor’slocationfromthecompany’sprospective
location?
Step2–UnderstandtheDemographics−Literacyofcustomersinthe
prospectivelocation,agegroups,profession,incomegroups,lifestyles,religion.
Step3–EvaluatetheMarketPotential−Densityofpopulationinthe
prospectivelocation,anticipationofcompetitionimpact,estimationofproduct
demand,knowledgeoflawsandregulationsinoperations.
Step4-IdentifyAlternativeLocations−Isthereanyotherpotentiallocation?
Whatisitscostofoccupancy?Whichfactorscanbecompromisedifthereisa
betterlocationaround?
Step5–FinalizethebestandmostsuitableLocationfortheretailoutlet.

12. Measuring the Success of Location
Oncetheretailoutletisopenedattheselectedlocation,itisimportanttokeep
trackofhowfeasiblewasthechoiceofthelocation.Tounderstandthis,theretail
companycarriesouttwotypesoflocationassessments−
MacroLocationEvaluation
Itisconductedatanationallevelwhenthecompanywantstostartaretailbusiness
internationally.Underthisassessment,thefollowingstepsarecarriedout−
Detailedexternalauditofthemarketbyanalyzinglocationsasmacro
environmentsuchaspolitical,social,economic,andtechnical.
Mostimportantfactorsarelistedsuchascustomer’slevelofspending,degreeof
competition,PersonalDisposableIncome(PDI),availabilityoflocations,etc.,and
minimumacceptablelevelforeachfactorisdefinedandthecountriesareranked.
Thesamefactorslistedaboveareconsideredforlocalregionswithintheselected
countriestofindareliablelocation.

13. Micro Location Evaluation
At this level of evaluation, the location is assessed against four factors namely −
Population−Desirablenumberofsuitablecustomerswhowillshop.
Infrastructure−Thedegreetowhichthestoreisaccessibletothepotential
customers.
StoreOutlet−Identifyingthelevelofcompetingstores(thosewhichthe
decreaseattractivenessofalocation)aswellascomplementarystores(which
increaseattractivenessofalocation).
Cost−Costsofdevelopmentandoperation.Highstartupandongoingcosts
affecttheperformanceofretailbusiness.