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Chap 7 - Retail

There are several types of retail locations that can be categorized as either unplanned or planned. Unplanned locations include freestanding stores and stores located in urban areas like downtown districts, inner cities, and main streets. Planned locations include a variety of shopping centers managed by a property firm, like convenience centers, power centers, enclosed malls, lifestyle centers, and mixed-use developments. When selecting retail locations, companies consider target customer shopping behaviors, market density, their business offering, and societal/legal factors like zoning laws.

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18 views4 pages

Chap 7 - Retail

There are several types of retail locations that can be categorized as either unplanned or planned. Unplanned locations include freestanding stores and stores located in urban areas like downtown districts, inner cities, and main streets. Planned locations include a variety of shopping centers managed by a property firm, like convenience centers, power centers, enclosed malls, lifestyle centers, and mixed-use developments. When selecting retail locations, companies consider target customer shopping behaviors, market density, their business offering, and societal/legal factors like zoning laws.

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CHAPTER 7 – RETAIL LOCATIONS

1. Types of retail locations


- Unplanned locations: do not have centralized management that determines what stores
will be in a development, where the specific stores will be located, and how they will be
operated
- Planned locations: the shopping center developer and/or manager makes and enforces
policies that govern store operation (opening/ closing hours)
In Planned locations: there is CAM – common area maintenance, responsible for
providing security, parking lot lighting, ads, special events, etc.
- In US:
47%: planned locations
53%: unplanned locations
Gross Leasable area (GLA) is the real estate industry’s term for the total floor area,
designed for the retailer’s occupancy and exclusive use, including any basements,
mezzanines, or upper floors
Trade area: geographic area that encompasses most of the customers who would
patronize a specific retail site

2. Unplanned locations
2.1. Freestanding sites: are retail locations for an individual, isolated store unconnected
to other stores; however, they might be near other freestanding stores/ shopping center
Outparcels: are freestanding stores that are not connected to other stores in the shopping
center, but are located on the premises of a shopping center, typically in a parking area
2.2. Urban locations
● The central business district: the traditional downtown financial and business
area in a city or town
● Inner city: low-income residential area within a large city

● Gentrified residential area: many inner city areas. Are going through a process
of gentrification – the renewal and rebuilding of offices, housing, and retailers in
deteriorating areas – coupled with more affluent people
2.3. Main street: the traditional downtown shopping area in smaller towns and secondary
shopping areas in large cities and their suburbs

3. Shopping centers and planned retail locations


The shopping centers are generally managed by a shopping center property management
firm
3.1. Convenience, neighborhood, and community shopping centers (also called strip
shopping centers): are attached rows of open-air stores with onsite parking usually
located in front of the stores (L-shaped, U-shaped, strip center  the linear
configuration)
3.2. Cower centers: are shopping centers that consist primarily of collections of big-box
retail stores, such as full-line discount stores (Target), off-price stores (Marshalls),
warehouse clubs (Cosco) and category specialists (Lowe’s, Staples, Best Buy, Sports
Authority, Toys “R” Us)
 open air but consists of a collection of freestanding (unconnected) “anchor” stores
and only a minimum number of smaller specialty store tenants
 are located near an enclosed shopping mall
3.3. Enclosed shopping malls: enclosed, climate-controlled, lighted shopping centers
with retail stores on one or both sides of an enclosed walkway
● Regional malls (less than 800,000 spare feet)

● Super-regional malls (more than 800,000 spare feet)


3.4. Lifestyle centers: are shopping centers that have an open-air configuration of
specialty store entertainment and restaurants with designed ambiance and amenities such
as fountains and street furniture
3.5 Mixed-use developments (MXDs): combine several different uses into one complex
including retail, office, residential, hotel, recreation, or other functions. They are
pedestrian-oriented and therefore facilitate a live-work-play environment
3.6. Outlet centers: contain mostly Manufacturers’ and retailers’ outlet stores
3.7. Theme/ festival centers: a unifying theme generally is reflected in each individual
store, both in their architecture and the merchandise they sell
3.8. Larger, multiformat developments – Omnicenters: new shopping center
developments are combining enclosed malls, lifestyle centers, and power centers
Cross-shop: a pattern of buying both premium and low-priced merchandise or
patronizing expensive, status-oriented retailers and price-oriented retailers

4. Nontraditional locations
4.1. Pop-up stores and other temporary locations: are stores in temporary locations
that focus on new products or a limited group of products
4.2. Store-within-a-store: involves an agreement in which a retailer rents a part of the
retail space in a store operated by another independent retailer
4.3. Merchandise kiosks: are small selling spaces, located in the walkways of enclosed
malls, airports, college campuses, or office building lobbies
4.4. Airports: a high-pedestrian area that has become popular with national retail chain

 For each type of locations, need to know definitions together with advantages and
disadvantages

5. Locations and retail strategy


 choosing the most appropriate locations  is one of the best strategy of retailers
The selection of locations depends on:

5.1. Shopping behaviors of consumers in retailer’s target market


● convenient shopping

● comparison shopping

● specialty shopping
5.2. Density of target market
5.3. Uniqueness of retailing offering
5.4. Societal and legal considerations
● urban sprawl: is the increased expansion of residential and shopping center
development in suburbans and rural areas outside their respective urban centers
● opposition to big-box retailers: because the new stores opening in local
communities will drive local retailers out of business (big-box sells at lower
prices)  increase the unemployment rate/low-wage labor.
● zoning: to regulate land uses in specific areas to prevent any interference with
existing uses by residents or businesses as well as encourage the preservation of a
community’s sense of identity.
● building codes: are legal restrictions that specify the type of building, signs, size
and type of parking lot, etc that can be used at a particular location (Signs or
Licensing requirements).

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