Gs Word.docx

A
 Project Report


on “LOCATION OPTIONS (TYPES)”

Submitted to: Auro University, Surat, Gujarat, India

Under the Guidance of: Mr. Gaurav Ashesh (Professor) In partial fulfillment of the Requirements for the Degree of Master of Business Administration (MBA)

Offered by: Auro University, Surat

In Subject: Enterpreneurship and New Venture Planning Prepared by: Ayushi Agarwal (Block 7, Semester 4, MBA 2017-19)

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TABLE OF CONTENT

SERIAL NUMBER

TABLE OF CONTENT

PAGE NUMBER

1.

Importance Of Location In Retail Business

3

2.

Steps To Choose The Right Retail Location

3

3.

Unplanned Retail Locations

4-5

4.

City Or Town Locations

6-8

5.

Planned Retail Locations

9 - 14

6.

Other Types

15 – 16

7.

References

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IMPORTANCE OF LOCATION IN RETAIL BUSINESS Retail store location is also an important factor for the marketing team to consider while setting retail marketing strategy. Here are some reasons –  Business location is a unique factor which the competitors cannot imitate. Hence, it can give a strong competitive advantage.  Selection of retail location is a long-term decision.  It requires long-term capital investment.  Good location is the key element for attracting customers to the outlet.  A well-located store makes supply and distribution easier.  Locations can help to change customers’ buying habits.

STEPS TO CHOOSE THE RIGHT RETAIL LOCATION A retail company needs to follow the given steps for choosing the right location −

Step 1 - Analyze the market in terms of industry, product, and competitors − How old is the company in this business? How many similar businesses are there in this location? What the new location is supposed to provide: new products or new market? How far is the competitor’s location from the company’s prospective location? Step 2 – Understand the Demographics − Literacy of customers in the prospective location, age groups, profession, income groups, lifestyles, religion. Step 3 – Evaluate the Market Potential − Density of population in the prospective location, anticipation of competition impact, estimation of product demand, knowledge of laws and regulations in operations. Step 4 - Identify Alternative Locations − Is there any other potential location? What is its cost of occupancy? Which factors can be compromised if there is a better location around? Step 5 – Finalize the best and most suitable Location for the retail outlet.

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TYPES OF RETAIL LOCATION UNPLANNED RETAIL LOCATIONS FREE STANDING SITES Where there are no other outlets in the vicinity(near) of the location and therefore store depends on its own pulling power and promotion to attract customers. Shoppers are not “just next door” and decide to walk in as they could in a mall or strip centre. This type of location has several advantages including no competition, low rent, and better visibility from the road, easy parking and lower property. India is currently dominated by free standing stores in terms of both volumes and value. All small retailers are operators/owners of free standing stores in India. However, it is not correct to identify free standing stores with general retail and other stores as modern retail. Modern retail chains like Big Bazaar are many times free standing stores in India. It will probably have ample parking and the cost per square foot will be reasonable. The price for all that freedom may be traffic. Unlike the attached retail locations, where customers may wander in because they were shopping nearby, the retailer of a freestanding location has to work at marketing to get the customer inside. Eg: Stores that rely totally on drive – in and walk up business, such as Fox Photo, are designed to offer extremely quick service and require a significantly smaller amount of space than more traditional park – and –shop stores.

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MERCHANDISE KIOSKS Small, temporary selling spaces typically located in the walkways of enclosed malls, airports, train stations, or office building lobbies. They are of 40-500 sq feet, with short term leases. Kiosks have contributed to one of the hottest trends in retailing--temporary tenants. Some of these are seasonal businesses that only need to be open for a limited time. Eg: Café coffee day, ferns and petals, perfumes etc. A specialty candy shop may open just before Christmas, remain open through Valentine's Day, Easter and Mother's Day, then close for the remainder of the year. But many other kiosk operators can run their businesses year round, selling anything from hot dogs to sunglasses, from men's ties to T-shirts. The most popular site for a temporary operation is a busy mall, but many operators are also finding success in airports and other transportation facilities, at sporting events, and at other creative venues limited only by their imagination and ability to strike a deal with the property manager.

For many entrepreneurs who dream of breaking into retail, opening a shop is costprohibitive--but a kiosk can be a low-cost profitable possibility. You might also want to consider using a kiosk to test your product in a retail setting before making the larger investment in a traditional store. Styles range from simple to elaborate; whatever you choose, be sure it's attractive, well lit and functional.

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CITY OR TOWN LOCATIONS CENTRAL BUSINESS DISTRICT (CBD) Traditional downtown business area in a city or town. The main center of commerce and trade in the city. (High land rates, intense development). It is the commercial, office, retail, and cultural center of the city and usually is the center point for transportation networks.

THE HISTORY OF THE CBD The CBD developed as the market square in ancient cities. On market days, farmers, merchants, and consumers would gather in the center of the city to exchange, buy, and sell goods. This ancient market is the forerunner to the CBD. As cities grew and developed, CBDs became a fixed location where retail and commerce took place. The CBD is typically at or near the oldest part of the city and is often near a major transportation route that provided the site for the city's location, such as a river, railroad, or highway. Over time, the CBD developed into a center of finance and control or government as well as office space. In the early 1900s, European and American cities had CBDs that featured primarily retail and commercial cores. In the mid-20th century, the CBD expanded to include office space and commercial businesses while retail took a back seat. The growth of the skyscraper occurred in CBDs, making them more and more dense.

THE MODERN CBD By the beginning of the 21st century, the CBD had become a diverse region of the metropolitan area and included residential, retail, commercial, universities, entertainment, government, financial institutions, medical centers, and culture. The experts of the city are often located at workplaces or institutions in the CBD—lawyers, doctors, academics, government officials and bureaucrats, entertainers, directors, and financiers.

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In recent decades, the combination of gentrification (residential expansion) and development of shopping malls as entertainment centers have given the CBD new life. One can now find, in addition to housing, mega-malls, theaters, museums, and stadiums. San Diego's Horton Plaza is an example of redeveloping the downtown as an entertainment and shopping district. Pedestrian malls are also common today in CBDs in an effort to make the CBD a 24 hour a day destination for not only those who work in the CBD but also to bring in people to live and to play in the CBD. Without entertainment and cultural opportunities, the CBD is often far more populated during the day than at night, as relatively few workers live in the CBD and most commute. Advantages Has large no people in that area during business hours  Hub for public transportation, high level of pedestrian traffic.  Large no of residents living in that area Disadvantages High security  Limited parking  Evening and weekends slow. Eg- Church gate and Colaba, Fifth Avenue- NY, Cannaught place in Delhi.

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MAIN STREET Traditional shopping area of smaller towns, or secondary business district in a suburb or a larger district. Occupancy costs are lower, fewer people in the area, fewer storeslow selection. Fewer entertainment and recreation options. The term is commonly used in Ireland, Scotland, the United States, Canada, and less often in Australia and New Zealand. In most of the United Kingdom the common description is High Street though "Fore Street" or "Front Street" is commonplace in some regions. In Jamaica the term is Front Street. In many places, the street name for such a street is actually "Main Street", though even where it isn't the term "Main street" is still used to describe the main thoroughfare of the central business district. The "Main Street of America" branding was used to promote U.S. Route 66 in its heyday. Eg- To attract consumers and retailers, these Main Street redevelopment efforts focus on providing a better shopping experience than big-box retailers do.

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PLANNED RETAIL LOCATIONS SHOPPING CENTERS A group of retail and other commercial establishments that is planned, developed, owned and managed as a single property. Usually developer and shopping center management carefully select a set of retailers that are complementary to provide consumers with one stop shopping experience with well balanced assortment of merchandise. SC mgmt. maintains the common facilities – parking, security, lighting, outdoor signage for the centre, advertisements and special events to attract consumers. Every SC has one or two major retailers known as Anchors (is major retail store used to drive business to smaller retailers). Anchors are wooed by the developer because they attract a significant no of consumers and are appealing to consumers and other retailers. Anchors get special deals in terms of rent. Shopping centres are generally of neighbourhood, community, or regional scope. The smallest type, the neighbourhood centre, usually has a supermarket as a focus, with daily convenience shops such as a drugstore, shoe repair, laundry, and dry cleaner accompanying it. Such a centre can usually serve 2,500 to 40,000 people within a sixminute drive.

The community shopping centre contains all of the above-mentioned services in addition to a medium-sized department store or variety store, which acts, with the 9

supermarket, as a focus. Wearing apparel, appliance sales, and repair stores are also found here. This centre will normally serve 40,000 to 150,000 people. The regional shopping centre provides a full range of shopping services comparable to those found in a small central business district. It is built around at least one full-size department store and often several; specialty shops and boutiques are numerous, and there are usually several restaurants and perhaps a motion-picture theatre. Services for the immediate day-to-day needs are minimized. It will serve as many as 150,000 or even 400,000 or more people. On larger sites motels, medical centres, or office buildings may also be provided.

NEIGHBORHOOD AND COMMUNITY SHOPPING CENTRES A shopping complex constructed around a supermarket and/or drug store as the only anchor tenant(s). It provides for the sale of convenience goods and personal services for the day to- day living needs of the immediate neighborhood. Advantages Lower costs  Customer convenience

Disadvantages Limited trade area  Lack entertainment and recreation  No protection from weather According to ICSC's SCORE publication, roughly half of these centers are anchored by a supermarket, while about a third have a drugstore anchor. These anchors are supported 10

by stores offering pharmaceuticals and health-related products, sundries, snacks and personal services. A neighborhood center is usually configured as a straight-line strip with no enclosed walkway or mall area, although a canopy may connect the storefronts.

POWER CENTRES Dominated by several large anchors, a power center includes discount department stores, off – price stores, warehouse clubs, or “category killers,” that is, stores that offer tremendous selection in a particular merchandise category at low prices. For example, service merchandise, Pets Mart, Best Buy, Office Depot, and Toys ‘R’ us could share a common parking area in much the same fashion as a traditional shopping center.

HOW POWER CENTERS FIT IN THE RETAIL REAL ESTATE MARKET Power centers are often designed to make the big box anchor tenants highly visible to consumers and the additional retailers are laid out to complement their presence. For example, the major anchor tenants could include a large supermarket, a seller of home furnishings and a big box electronics and appliance retailer. Each major tenant offers frequently sought products that consumers regularly purchase. The anchor tenants are typically chosen so they will not conflict or cannibalize each other’s customers. For instance, the customer visiting the supermarket restocks on food for their home. They might also drop by the appliance retailer to look for a new refrigerator for their kitchen. Paying a visit to the home furnishings store would offer them the chance to pick out a new sofa for their living room. The smaller tenants in a power center might be specialty retailers or eateries. This can include hair and nail salons, wine stores and wireless phone sellers. Small casual and quick-serve dining establishments may be positioned here to offer shoppers a place to have a meal as they make their way between the anchor tenants. The amount of time that consumers spend at a power center can increase with the diverse options made available to them. The inclusion of a movie theater on such a property adds an entertainment option to attract more visitors.

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SHOPPING MALLS Malls have a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. Many retail stores operating at one place form a mall. Advantages      

Broad merchandise Large customer traffic Large trade area Entertainment option Hangout options for teens Weather protection Maintenance taken care of

Disadvantages High occupancy costs  Mall management issues  Intense competition within retailers Some of the general characteristics of malls are: ➢The presence of multiplex ➢The presence of well-defined parking system ➢The presence of appropriate landscaping ➢The presence of ‘anchor shop’

LIFESTYLE CENTRES

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Lifestyle centers are similar to malls, except that they are on the smaller side, averaging around 320,000 square feet Shopping centres with open air configuration of upscale specialty stores, entertainment and restaurants. They are located near affluent neighbourhoods and cater to lifestyle of consumers. Lifestyle centers often create this experience in part by generating a "town square" feeling, with shops lining opposite sides of the square, with places to converge, eat, and socialize in the middle. Eg- Palladium Mall in Mumbai

New technologies, such as mobile devices, Wi-Fi networks, mobile wallet software and Beacon sensors, consumer personalization and location-based services have become increasingly important to lifestyle centers, enabling consumers to browse the Web while at a lunch table or to check shopping cart items online when they are in a store. Retailers are also seeing the importance of using Beacon mobile wallet technology to encourage consumers to make purchases on-site or to mine their customer data to provide more targeted retail offers and information. Companies are also interested in using Beacon sensors to enhance on-site experience by providing push notifications to consumers or guiding them to certain aisles in a store. Mobile wallets and beacons may also help connect consumers with sales associates who can provide additional one-on-one information that can enhance the customer experience.

FASHION/SPECIALITY CENTRES Composed of upscale apparel shops, boutiques and gift shops carrying fashion or unique merchandise of high quality and price. Specialty store would specialize in a particular product and would not sell anything else apart from the specific range. 13

The physical design of the center is very sophisticated, emphasizing a rich décor and high quality landscaping. These centers usually are found in trade areas having highincome levels. These centers need not be anchored, although sometimes restaurants or entertainment can provide the draw of anchors. The physical design of the center is very sophisticated, emphasizing a rich decor and high quality landscaping. These centers usually are found in trade areas having high income levels. Eg - Phipps Plaza- Atlanta – tiffany, Gucci, Giorgio Armani etc.

OUTLET CENTRES Shopping centers that contain mostly mfg and retailer’s outlet stores including off price stores. Well designed buildings with landscaping, gardens food courts, entertainment. Located in tourist areas. Eg 1.2 million sq foot Factory Outlet Mega mall in Niagra falls – 15 million tourists Historically, outlet stores solved the problem of leftover stock in a world of fast fashion, but today, Outlet Centres are becoming an important part of both investors’ and retailers’ development strategies, with retailers taking a three-pronged approach to their market offering, embracing full price stores, online and now outlet. Outlet leasing terms are particularly relevant in the current retail climate as they allow more flexible terms and shorter lease lengths to retailers and, by design, enable landlords and retailers to share sales success through a turnover lease structure which facilitates a significantly reduced starting rent for retailers. This structure enables Outlet Shopping to offer an alternative to landlord inflexibility and respite from the overrenting situation prevalent on the UK High Street, which Mike Ashley was commenting on at the select committee.

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OTHER TYPES THEME/FESTIVAL CENTRES It is a unifying theme carried by the individual shops in design and merchandise. The biggest appeal of this center is for tourists. The center is generally located in an urban area, tends to be adapted from an older (sometimes historic) building, and can be part of a mixed – use project. A theme / festival center normally contains from 80,000 to 250,000 square feet and covers 5 to 20 acres. Theme centers have common architectural motifs that unite a wide range of retailers.

FACTORY OUTLET CENTER Usually located in a rural or occasionally in a tourist area, an outlet center consists mostly of manufactures stores selling their own brands at a discount. Factory outlet stores seem to be most popular among specialty clothing, sporting goods, leather goods, luggage shoes, and house wares manufactures. Factory outlet stores provide manufactures with a way to sell the products that were over produced without going through the traditional retail distribution channel. Factory outlets are owned and operated by manufacturers and normally carry the manufacturers' surplus, discontinued, or irregular goods.The knitwear company has a factory outlet in addition to selling to high-end clothing retailers around the world.

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A factory outlet is a premises in which a manufacturer offers goods for sale direct to the public. Such outlets are often cheaper than retail stores because retail costs are not included. Recently these outlets have transformed into Shopping center that groups more retailers in one location and mega companies that own many labels sell via these Factory Outlets. The discounts can range anywhere from 25 % to 75 %.all the year round.

The main advantages include:  An opportunity to sell surplus stock direct to the public via a branded shop  Increase in market share and brand awareness

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REFERENCES https://financial-dictionary.thefreedictionary.com/ https://www.britannica.com/ https://searchcrm.techtarget.com/ https://www.mbaskool.com/

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THANKYOU!

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