Scribd
Upload
49 views3 pages

Notes For Retailing Final

Uploaded by

salma azam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
49 views3 pages

Notes For Retailing Final

Uploaded by

salma azam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

Syllabus

Retail Location

Store design

Retailing at digital age

Pricing

Communication strategy

Customer relationship management

What are the 3 most imporatnt thingsin retailing? Location

Importance of store location:first consideration in store choice

→having a goodlocaton increases chances of developing a strong ustsianablecompetitive advantage

- Location decisions can be risky and should be well though out


- 3 tyoes of locations: isloated stores, planned shopping centre, unplanned business district
- For isloated stores,
- advantages: no direct competition, low rent, flexibility,high visibility,adaptablefacilities,e asy
parking, excellent for stores that generates their own traffic,disadvantages:
- difficulty attracting customers, travel distances, lack of cumalative attraction for customers,
high advertising expenses, nocost sharing for promotions
- Examples of large formats like walmart

Unplanned business districts

Central Business districy is a hub of retailingin a city, greatest density of office buildingd and stores

Secondary business distrticts usually bounded by the intersection of 2 major streets

Neighbourhood business district: appeals ti the convenience shopping and service needs of a single
residential area

Leeading leader is supermarkets, large drugstore, situated on the major streets of ots residentil area

String: a group of retail stores with similar compatible product lines, located along a street or
highway

Planned shopping centre: shopping mall

Advantages,wellrounded assortment, strong suburban population, one-stop family shopping, cost


sharing of promotions,transportation access, pedestrain traffic

Disadvantages: Limited flexibility, higher rent, restricted product offerings in lease, competition,
requirement of association memberships, domination by anchor stores,impact of store closings on
affinites

Nontraditional locations: pop-up stores and other temporary locations: focus on new products or
limited group of products
Merchandise kiosks,store within store (apple in a mall)

Shopping behaviour of consumers

Convenienve shopping (minimal effort to get to the product)

Comparison shopping (consumer more involved in purchased decision)

Spcialty shopping(consumers knows whatthey wany and wont accept subsitute

Good locatiom→ density if target market)no.of ppl a lot),uniqueness of retail offering

Factors affectign the attractiveness of an area for locating stores

Strategic fit with target market

Economic conditions

Cost of operating stores

Competition

• Considerations in Evaluating Store Locations

• Economic

• Population and employment growth levels

• Competition

• Strategic fit

• Right demographic and lifestyle fit

• Operating costs

• Proximity of area being considered to other areas in which the retailer


operates stores

• Local and state regulations

When defining location decisions

Competition, stretgic fit, economic conditions,operaing costs

Trade area primary 70-50, secondary and tertiary

Once they gace trade area defined, can use analytical techniques to estimate demand

Factors Affecting the Size of the Trade Area

Accessibility

Natural & physical barriers


Competition,Nature of merchandise,Assortment offered,Location of alternative sources

Estimating potential sales for a store site

Regression analysis

Abalog appraoch

Huffs gravity model

Regression Analysis

Factors that affect existing stores will have same impact on stores being considered for new sites

Statistical model predicts sales at existing locations

Analog Approach

Used by small chains

Retailer describes site and trade area for successful store and tries to find a site that is similar

Huff’s Gravity Model

probability which a given customer will shop in a particular store


or shopping center becomes larger as the size
of store or center grows and distance or
travel time from customer shrinks

Store design

Grid layout

➔ Utiltiarian benefits store offers


➔ Easy to find products they want to purchase
➔ Cost efficient
➔ Wants to increase centre store sales

Racetracklayout (loop layout)

→majoraisle guides traffic through diff departments, unplanned purchases

Freeform layout

➔ Boutique layout

You might also like