Describe the types of retail locations available to retailers.

Store location
decisions are important decisions for a retailer because location is typically one of the
most influential considerations in a customer’s store-choice decision. Location decisions
also have strategic implications because they can be used to develop a sustainable
competitive advantage and location decisions are risky. Many types of locations are
available for retail stores, each type with its benefits and limitations. The two basic types
of location are unplanned (freestanding and urban sites) and planned (shopping
centers). 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.

The types of unplanned locations. Two basic types of location are unplanned
(freestanding and urban sites) and planned (shopping centers). 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. The three types
of unplanned retail locations are freestanding sites, urban and Main Street locations.
Freestanding locations are convenient for customers and have high vehicular traffic and
visibility, modest occupancy costs, and few restrictions. But freestanding sites are
higher in cost and have smaller trade areas. In general, urban locations have lower
occupancy costs than enclosed malls; vehicular traffic is limited, and parking problems
reduce consumer convenience.

In planned locations, the shopping center developer and/or manager makes

and enforces policies that govern store operations, such as the hours that a store must
be opened. The shopping center management also maintains the common facilities
such as the parking area—an arrangement referred to as common area maintenance
(CAM)—and is responsible for providing security, parking lot lighting, outdoor signage
for the center, advertising, special events to attract consumers, and so on. Some
retailers are shifting from planned locations to freestanding locations to offer their
customers a better shopping experience.

Analyze the characteristics of the different types of shopping centers. By

combining many stores at one location, shopping centers attract more consumers to the
center than would be the case if the stores were at separate locations. These shopping
centers are generally managed by a shopping center property management firm, which
is a company that specializes in developing, owning, and/or managing shopping
centers. The developer and shopping center management carefully select a set of
retailers that are complementary to provide consumers with a comprehensive shopping
experience at one, convenient location. Each of the types of shopping centers has its
advantages and disadvantages. Many central business districts, inner-city, and Main
Street locations have become more viable options than they were in the past because
of gentrification of the areas, tax incentives, and lack of competition. There also are a
wide variety of shopping center types for retailers. They can locate in a strip or power
center; an enclosed mall; or a lifestyle, theme/festival, or outlet center.

The nontraditional retail locations. Pop-up stores, stores-within-a-store,

kiosks, and airports are other location alternatives for many retailers. Pop-up stores are
particularly attractive to retailers with highly seasonal sales. Store-within-a-store
locations involve an agreement in which a retailer rents a part of the retail space in a
store operated by another independent retailer. These locations are mutually beneficial
to the host and store within.

Match the locations to the retailer’s strategy. The selection of a location type
reinforces the retailer’s strategy. Thus, the location-type decision is consistent with the
shopping behavior and size of the target market and the retailer’s positioning in its
target market. Different shopping locations are more appropriate for consumers
engaged in three types of customer shopping situations: convenience shopping,
comparison shopping, and specialty shopping.

Review the societal and legal considerations in selecting locations. Societal

and legal considerations often restrict the locations and operations of standalone stores
and shopping centers. These restrictions reflect the general concern that many
communities have with urban sprawl and, more specifically, with the opening of big-box
retail stores in their communities. Shopping center developers and retailers often need
to deal with zoning ordinances before they open stores in a community.
 It was also highlighted in this chapter the two types of store location namely
planned and unplanned locations. Unplanned retail areas are areas that weren't
specifically designed for shopping. These include freestanding buildings and downtown
areas. On the other hand, planned retail area are spaces that are built specifically for
shopping purposes. People go to planned retail areas because they know that's where a
lot of retail shops will be. The benefit to these planned retail areas is more traffic from
people visiting the area.

To sum it up, the chapter’s main point emphasized clearly on the importance of
store location in terms of retailing. Good location is the key element for attracting
customers to the outlet. A well-located store makes supply and distribution easier and
can help to change customers’ buying habits. Therefore, there is a need for specific
research as to where will you place your store for them to be accessible to customers.