Stephanie`s Boutique

Selecting a Store Location

Submitted by: Ankit Goel smba08033 Abhinay bajapi smba08007 Rawandev kaur smba08181 Divyadarshan smba08079 Amrita datta smba08027

Points to be Discussed About Stephanie Selecting a Store   

- The Downtown Arcade - Tenderloin Village - Appletree Mall



Discussion Question 

Stephanie Wilson

     

In her late 30’s, Working in municipal government. Majored in Fine Arts. Divorced with two children. Wants her own business. Loves Fashion, has a flair for it. Evening Courses: Retail Management & Fashion Design.

The Downtown Arcade      

   

Arcade building since 1912. Vacant from last 15 years, going to be completed in next 6 yr. 3 level shopping facility - 40 shops on ground floor - 28 on Second floor. - Restaurant on third floor. Considerations: 30 feet square, near main entrance. Rent: $ 20 per sqft., Annual total; $ 18,000. If sales exceed $225,000 rent: 8% of the sales. 3 year lease contract.

Tenderloin Village  Yuppie

Enclave: well kept Brownstones building & comfortable neighborhood.  20 small retailer adjacent to the convention centre.  Mostly “Ferns and Quiche” restaurants.  Three small women`s clothing stores.  Site Available: main street on the ground floor.  Space: 900 sqft.  Rent: $ 15,000 annually (no clause)  Two year lease

Appletree Mall • Suburban mall has been open for 8 years. • 8 miles from Downtown. • Regional centre: 3 department store & 100 smaller shops. • Two doors from the local department store chain`s mall outlet. • Area: 1200 sqft. (24 ft in front by 50 ft deep). • Rent: $28,800 annually • If sales exceed $411,500 Rent: 7% of sales. • Additional Charges: 1% of sales. • Five year lease. • Escape clause: two year if sales don`t reach $ 411,500

Give the + and - of each location?  Location Characteristics 

The Downtown Tenderloin Arcade Village

Area (in sqft) 30 Rent (annually) $ 18,000 Lease Duration Years Coverage Clause If sales > $225,000 then Additional No 8% Charges People More working/living in area

900 $ 15,000 2 years No Clause No More

Appletree mall 1200 $ 28,000 5 years If sales > $411,500 then 1% 7% Few

What type of store would be most appropriate for each location?

If you were Stephanie, which location would you choose? Why? • Tenderloin Village  





•

¯ population size ¯ Competition - 3 in Tenderloin Village - 9 in Appletree Mall ¯ transportation access - Urban area & adjacent to convention centre - Appletreemall 8 miles from Downtown. ¯ nature of nearby stores ¯ Cheapest rent ¯ length of agreement (2 year) ¯ No legal restrictions

THANK YOU