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Retail Mix

The document discusses factors to consider for retail location analysis and planning. It addresses 4 key aspects: 1) Why location is important for retailers in terms of sales potential and competitive advantage. Consumer behavior and competition influence location decisions. 2) Methods for location research including density of target groups, uniqueness of offerings, and minimizing future sales erosion. 3) Issues to examine such as store rollout, relocation, rationalization and refurbishment. Location types like free-standing, malls, and specialized are also covered. 4) Shopping behaviors around convenience, comparison and specialty are reviewed. The document outlines 4 levels of location decisions from region to specific site.

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Ankur Goyal
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58 views16 pages

Retail Mix

The document discusses factors to consider for retail location analysis and planning. It addresses 4 key aspects: 1) Why location is important for retailers in terms of sales potential and competitive advantage. Consumer behavior and competition influence location decisions. 2) Methods for location research including density of target groups, uniqueness of offerings, and minimizing future sales erosion. 3) Issues to examine such as store rollout, relocation, rationalization and refurbishment. Location types like free-standing, malls, and specialized are also covered. 4) Shopping behaviors around convenience, comparison and specialty are reviewed. The document outlines 4 levels of location decisions from region to specific site.

Uploaded by

Ankur Goyal
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
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Retail Mix

Customer Location
Service

Store Design Merchandise


And Display Retail Strategy Assortment

Communication Pricing
Mix

1
Retail Mix

Location Strategy

Customer
Service

Store Display Merchandise


And Design Assortment

Communication
Mix Pricing

2
LOCATION ANALYSIS
SMITU MALHOTRA

3
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?

4
location research – why ?
 SALES POTENTIAL OF A STORE

 CHOOSE LOCATION THAT


 OPTIMIZES THE SHARE OF MARKET POTENTIAL
 MINIMUM HAZARD FOR FUTURE SALES EROSION
 MAXIMIZES ROI OVER THE LEASE PERIOD

5
ERGO ------ USEFUL WHEN ??
• FIRM SEEKS TO EXPAND /IMPROVE MARKET
• PROPOSES TO OPEN STORES IN NEW AREAS
• CONSIDERS AN ACQUISITION

6
Issues in Location Planning
• Rollout / extension (increase in floor space)
• Relocation (combining two nearby stores or moving to a better
location)

• Rationalization (the closure of individual stores or selling of


divisions

• Refascia (altering the image of outlets by changing the name and


appearance)

• Refurbishment (changing or updating the fittings)


• Remerchandising (altering the product range and
merchandising of a retail location)

7
WHAT INFLUENCES LOCATION
DECISIONS?
 CONSUMER BEHAVIOR
 DENSITY OF TG
 UNIQUENESS OF RETAIL OFFERING
 COMPETITION
 COSTS OF OPERATION

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Effect of Competition
 Why do retailers cluster around together?

 Hotelling’s rule

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Geographic Planning -----Central
Place Theory

Threshold – yellow area


tC
A
th range

10
Shopping Behavior of Consumers
in Retailer’s Target Market
 Consumer Shopping Situations
 Convenience shopping
 Comparison shopping
 Specialty shopping

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Convenience Shopping
 Minimize the
customer’s effort to
get the product or
service by locating
store close to where

The McGraw-Hill Companies, Inc./Andrew Resek, photographer


customers are located

12
Comparison Shopping

 Customers have a good idea of


what type of product they
want, but don’t have a strong
preference for brand, model or
retailer.
 Competing retailers locate near
one another

Typical for furniture, appliances,


apparel, consumer electronics,
hand tools and cameras.
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Specialty Shopping

 Customers know what


they want
 Designer labels
 Convenient location
matters less

14
What kinds of locations are
available to the retailer ?
 FREE STANDING
 CITY
 BUSINESS DISTRICT – CP IN DELHI
 MAIN STREET / HIGH STREET - JANPATH
 MALLS AND SHOPPING CENTERS
 OUTLET MALLS
 SPECIALIZED
 AIRPORTS

15
FOUR LEVELS OF LOCATION
DECISIONS
➢ What region of the country?
➢ What city or community?
➢ What area of the city?
➢ What specific site?

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