MKTG 350 – ch.9;10 – Flashcards

1. Some loyal customers and employees may be lost; the greater the distance between the old and new locations, the bigger the loss. 2. A new site may not have the same traits as the original one 3. Store fixtures and renovations at an old site usually cannot be transferred to a new site; their remaining value is lost if they have not been fully depreciated

1. Evaluate alternative geographic (trading) areas in terms of the characteristics of residents and existing retailers 2. Determine whether to locate as an isolated store, in an unplanned business district, or in a planned shopping center within the geographic area 3. Select the general isolated store, unplanned business district, or planned shopping center location 4. Analyze alternate sites contained in the specified retail location type

a geographic area containing the customers of a particular firm or group of firms for specific goods or services

encompasses 50 to 80 percent of a store's customers

contains an additional 15 to 25 percent of a store's customers

includes all the remaining customers and they are the most widely dispersed

retail outlet with a trading area much larger than that of a competitor with a less unique appeal; offers a better merchandise assortment in its product category(ies), promotes more extensively, and/or creates a stronger image

does not create its own traffic and has no real trading area of its own; this store depends on people who are drawn to the location for other reasons

toll bridges, poor roads, rail tracks, one-way streets, etc.

different sales taxes in 2 towns, etc.

supplies a wide range of demographic data for all U.S. cities and surrounding vicinities

reflects a community's commercial and industrial infrastructure and residents' sources of income. A firm seeking stability normally prefers an area with a diversified economic base to one with a base keyed to a single major industry

has too few stores selling a specific good or service to satisfy the need of its population

has so many stores selling a specific good or service that some retailers cannot earn an adequate profit

has the proper amount of stores to satisfy the needs of its population for a specific good or service, and to enable retailers to prosper

a freestanding retail outlet located on either a highway or a street; there are no adjacent retailers with which this type of store shares traffic

a type of retail location where 2 or more stores situate together (or in close proximity) in such a way that the total arrangement or mix of stores is not due to prior long-range planning

1. Central Business District (CBD) 2. Secondary Business District (SBD) 3. Neighborhood Business District (NBD) 4. String

(unplanned) the hub of retailing in a city (downtown); exists where there is the greatest density of office buildings and stores; no pre-set format

(unplanned) usually bounded by the intersection of 2 major streets

(unplanned) appeals to the convenience shopping and service needs of a single residential area

(unplanned) comprising a group of retail stores, often with similar or compatible product lines, located along a street or highway (ex. car dealers)

consists of a group of architecturally unified commercial establishments on a site that is centrally owned or managed, designed and operated as a unit, based on balanced tenancy, and accomplished by parking facilities

the stores in a planned shopping center complement each other as to the quality and variety of their product offerings, and the kind and number of stores are linked to overall population needs

a large, planned shopping facility appealing to a geographically dispersed market; at least 1 or 2 department stores and 50 to 150 or more smaller retailers

(regional center) an enormous planned shopping center with 1 million+ square feet of retail space, multiple anchor stores, up to several hundred specialty stores, food courts, and entertainment facilities

a moderate-sized, planned shopping facility with a branch department store (traditional or discount) and/or a category killer store, as well as several smaller stores (similar to those in a neighborhood center

a shopping site with: 1. up to half-dozen or so category killer stores and a mix of smaller stores 2. several complementary stores specializing in one product category

an open-air shopping site that typically includes 150,000 to 500,000 square feet of space dedicated to upscale, well-known specialty stores

a planned shopping facility, with the largest store being a supermarket or a drugstore; convenience-oriented goods and services; usually arranged in a strip

the optimum site for a particular store

-Pedestrian Traffic (number of people, type of people) -Vehicular Traffic (number of vehicles, type of vehicles, traffic congestion) -Parking Facilities (number and quality of parking spots, distance to store, availability of employee parking) -Transportation (availability of mass transit, access from major highways, ease of deliveries) -Store Composition (number and size of stores, affinity, retail balance) -Specific Site (visibility, placement in the location, size and shape of the lot, size and shape of the building, condition and age of the lot and building) -Terms of Occupancy (ownership or leasing terms, operations and maintenance costs, taxes, zoning restrictions, voluntary regulations)

ownership vs. leasing, the type of lease, operations and maintenance costs, taxes, zoning restrictions, and voluntary regulations - must be evaluated for each prospective site

a retailer pays a fixed dollar amount per month over the life of the lease

stipulates that rent is related to sales or profits

calls for precise rent increases over a stated period of time

has a provision allowing rent to increase if a property owner's taxes, heating bills, insurance, or other expenses rise beyond a certain point

calls for all maintenance costs (such as heating, electricity, insurance, and interior repair) to be paid by the retailer