CHOICE OF RETAIL LOCATION

CHOICE OF RETAIL LOCATION-MEANING

choice of location is a most important strategic decision in retailing. It is a major factor contributing to the success or failure of a retail business. A good retail location may lead to a success even if merchandise dealt is limited, prices are high and promotion is not done in an attractive manner. On the other hand even if the assortments are wide, prices are affordable and promotion is very attractive a retail firm may fail if the location decision is made wrongly.

Steps in deciding the location of Store

Evaluate geographic/ Trading areas in terms of the potential characteristics of Residents, offices, commercial establishments and existing retailers. Determine the desirable location from the three basic formats viz., isolated, unplanned district or planned shopping centre. Select the general location for the store and evaluating the alternative store sites Computing the overall rating and making the selection.

FACTORS DETERMINING TRADING AREAS

The type of store The location of the competitors Size of the store The housing pattern of the shoppers Media availability and the media habits The vehicle population, road conditions, travel time/driving time

EVALUATING THE TRADING AREA

Shoppers profile Analysis:- various aspect like the

population size, age distribution, income, buying power, number of households, education level, consumption pattern

Economic Base Characteristics:- The economic base

refers to the commercial and industrial infrastructure and the residents source of income in the trading area. The retailer should also take into account the percentage of labor in each industry, transportation, banking facilities, the impact of economic fluctuations and the future of the individual firms.

Competition:- If the competition is too intense in a location

it may not be a good choice, though other characteristics of the desired market are attractive. While evaluating the competition the retailer should consider the number of exiting retail stores, their market share, and the propensity for new stores to start operation, the strength and weakness of other retail stores, the short-run and long-run trends and the