ADMN-3170

Retail Marketing

WEEK 4
Dr. Yanina Chevtchouk
Today’s Agenda

• Debate #1
• Lecture #3: Focus – Retail Ownership and Strategy Mix
• Lecture #4: Geospatial theories for retail location
• Lecture #4: Focus – Trade Area Analysis

2
Looking Ahead

• Debate #2 is next week

• Midterm is in 2 weeks
• covers Weeks #1-4: chapter, lecture, debate, discussions etc.
• multiple choice, true false
• open book
• no class afterwards
• Reading Week is in 3 weeks

3
Chapter 4

Complete Blackboard Exercise

4
Chapter 5

Complete Blackboard Exercise

5
Geospatial theories for Site Selection

• Central place theory

• Spatial interaction theory
• Principle of minimum differentiation

6
Central place theory
• Store location is related to the store's location's surrounding
population density
• The more dense a population is, the smaller the store's distance
from the centre
• E.g., Starbucks locations in Toronto

7
Starbucks in downtown Toronto

Very dense
population,
many
locations

8
 Starbucks in Oshawa

less dense
population,
spaced out
locations

9
Spatial interaction theory
• store location is related to:
• consumer's proximity to the store (smaller stores are located in high
population density locations) or
• the store's attractiveness to the consumer (larger stores, with more
power of attraction, are located in lower population density locations).

10
Walmart in Toronto

Services
available:
• Photo
centre
• Minute
key

11
Walmart in Oshawa

Services Available:
• McDonalds
• Hair Salon
• Wireless
• Minute Key
• Western Union

12
Principle of minimum differentiation

• store location is related to the competitor's store location

• larger the stores density the smaller the distance between competitors
and that firms and their competitors tend to locate near the centre of the
market area.

13
Coffee Shops in Oshawa

Lots of
competitors
next to each
other
14
Chapter 9

Complete Blackboard Exercise

15
Next Week:

• Chapters 14 and 15