Professional Documents
Culture Documents
Chapter 10
Chapter 10
Chapter 10
Approach
Thirteenth Edition
Chapter 10
Site Selection
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Overview
Step 1: Investigate alternative trading areas (Chapter 9)
Step 2: Determine what type of location is desirable
Step 3: Select the general location
Step 4: Evaluate alternative specific store sites
Chapter 10 discusses steps 2-4.
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Isolated Stores
Advantages Disadvantages
• No direct competition • Difficulty attracting customers
• Low rental costs • Travel distance
• Flexibility • Lack of cumulative attraction for
• Good for convenience stores customers
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Characteristics of Planned Shopping
Centers
Feature Community center
Total site area 10-40+
Total sq. ft. leased 100,001-400,000
Principal tenant Branch department store
category killer
Number of stores 15-25
Minimum # of people in trading 3,000-50,000
area
Driving time of trading area Fewer than 20 minutes
Location Close to 1 or more populated
residential areas
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Characteristics of Planned Shopping
Centers
Feature Neighborhood center
Total site area 3-15+
Total sq. ft. leased 300,00-100,000
Principal tenant Supermarket or drugstore
Number of stores 5-15 or more
Minimum # of people in trading 20,000-100,000
area
Driving time of trading area Up to 15 minutes
Location Close to a populated
residential area
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The Neighborhood Shopping Center
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Location and Site Evaluation
• One-Hundred Percent Location
• The optimum site for a particular store
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Pedestrian Traffic
• The most crucial measures of a location/site’s value are
the number and type of people passing by.
• Proper pedestrian traffic count should include:
– age and gender (exclude very young children)
– count by time of day (may vary significantly)
– pedestrian interviews (what percent are actively
shopping)
– spot analysis of shopping trips (verify stores visited)
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Vehicular Traffic
• Important for
– convenience stores
– outlets in regional shopping centers
– car washes, fast food franchises, donut shops
– suburban areas with limited pedestrian traffic
– non-destination stores
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Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Parking Considerations
• Number and quality of spots
• Distance of spots from stores
• Parking slot security at early morning and late evening
hours
• Availability of employee parking
• Price to charge customers for parking
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Types of Leases
• Straight
• Percentage
• Maintenance-Increase Recoupment
• Graduated
• Net
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Copyright
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved