Marketing bán hàng - Chapter 7: Retail locations

Chapter 7Retail LocationsRetailing StrategyRetail Locations Chapter 7Site LocationsChapter 8Human Resource Management Chapter 9Information and Distribution Systems Chapter 10Customer Relationship Management Chapter 11Retail Market and Financial Strategy Chapter 5, 62Elements in Retail MixCustomer ServiceMerchandiseAssortmentPricingCommunication MixStore DisplayAnd DesignLocation Strategy3What Are the Three Most Important Things in Retailing?Location! Location! Location! Eddie Tan/Life File/Getty Images4Why is Store Location Important for a Retailer?Location is typically prime consideration in customer’s store choice.Location decisions have strategic importance because they can help to develop sustainable competitive advantage.Location decisions are risky: invest or lease?F. Schussler/PhotoLink/Getty Images5Types of Retail LocationsFree Standing SitesCity or Town LocationsInner CityMain StreetShopping CentersStrip Shopping CentersShopping MallsOther Location OpportunitiesPhotoLink/Getty Images6Types of Locations7Unplanned Retail Locations Freestanding Sites – location for individual store unconnected to other retailer Advantages: Convenience High traffic and visibility Modest occupancy cost Separation from competition Few restrictionsThe McGraw-Hill Companies, Inc./Andrew Resek, photographerJCPenney, Sears, Walgreens are shifting to stand alone locations8Unplanned Retail Locations Merchandise Kiosks – small temporary selling stations located in walkways of enclosed malls, airports, train stations or office building lobbies.Kent Knudson/PhotoLink/Getty Images9City or Town Locations Gentrification is bringing population back to the cities.The McGraw-Hill Companies, Inc./Andrew Resek, photographerAdvantage to Retailers:Affluence returnedYoung professionalsReturned empty-nestersIncentives to move provided by citiesJobs!Low occupancy costsHigh pedestrian traffic10Central Business DistrictDraws people into areas during business hoursHub for public transportationPedestrian trafficResidents High security requiredShopliftingParking is poorEvenings and weekends are slowAdvantagesDisadvantagesSpike Mafford/Getty Images11Main Streets vs. CBDsOccupancy costs lower than CBDsThey don’t attract as many peopleThere are not as many storesSmaller selections offeredNot as much entertainmentSome planners restrict store operations12The Most Expensive Shopping Streets in the WorldStreet LocationCost / sq foot / yearFifth Avenue (48th to58th St.)57th Street (5th Ave.to Madison Ave.)Oxford StreetMadison Avenue (57thto 72nd St.)Ave. des Champs ElyseeNew York CityNew York CityLondonNew York CityParis$580$500$400$375$36013Inner City Inner city retailers achieve high sales volume, higher margins and higher profits(c) Brand X Pictures/PunchStockUnmet demand tops 25% in many inner city marketsInner city customer wants branded merchandise14Shopping CentersShopping Center Management Controls:ParkingSecurityParking lot lightingOutdoor signageAdvertisingSpecial events for customersThe McGraw-Hill Companies, Inc./Andrew Resek, photographer15Types of Shopping CentersNeighborhood and Community Centers (Strip Centers)Power CentersEnclosed MallsLifestyle CentersFashion Specialty CentersOutlet Centers16Neighborhood and Community CentersAttached row of storesManaged as a unitOnsite parkingThe McGraw-Hill Companies, Inc./Andrew Resek, photographer17Power CentersBig box storesPhotoLink/Getty ImagesLimited small specialty storesFree-standing storesOpen air set upAvailable parkingDesirable shopping experienceMany located near enclosed mallsLarge trade areasLow occupancy costsConvenientModest vehicular and pedestrian traffic18The Largest North American Shopping Malls19Mall of AmericaLocated near Minneapolis, MNLargest mall in the USEnough people to qualify as the third largest city in MinnesotaHas more than 42 million visitors a yearMore people visit than Disney World, the Grand canyon and Graceland combinedDigital Vision/Getty Images20Advantages and Disadvantages of Shopping MallsAdvantages:Many different types of storesMany different assortments availableAttracts many shoppersMain Street for today’s shoppersNever worry about the weatherComfortable surrounding to shopUniform hours of operationDisadvantages:Occupancy costs are highTenants may not like mall management control of operationsCompetition can be intensePhotoLink/Getty Images21Challenge to MallsTime pressured society makes it impractical to wander mallsFashion apparel sold in malls experiencing limited growthMalls are getting old and rundown – unappealing to shopAnchor tenants are decreasing due to retail consolidation22Lifestyle CentersCourtesy of General Growth PropertiesPhoto provided by ICSC and used with permission of Aspen Grove Lifestyle Center23Stores and Restaurants at Lifestyle CentersStarbucksPanera BreadBed Bath & BeyondAnn TaylorVictoria’s SecretEddie Bauer Coldwater CreekBanana RepublicThe GapRestoration HardwareWilliams-SonomaPottery Barn Barnes & Noble/BordersDick’s Sporting GoodsAeropostaleHallmarkJohnny Rockets24Lifestyle CentersUsually located in affluent residential neighborhoodsIncludes 50K sq. ft. of upscale chain specialty storesOpen-air configuration Design ambience and amenitiesUpscale storesRestaurants and often a cinema or other entertainment Small department store format may be there25Fashion Specialty CentersUpscale apparel shopsNeed to be anchoredDécor is elegantThe McGraw-Hill Companies, Inc./Lars A. Niki, photographer26Outlet CentersThese shopping centers contain mostly manufacturers and retail outlet storesCourtesy of Beall’s, Inc.27Tradeoff Between LocationsRentTraffic There are relative advantages and disadvantages to consider with each location.28Relative Advantages of Major Retail LocationsLocation City Strip Shopping FreeIssues Center Mall StandingLarge size + - + -draws peopleto areaPeople + + - -working/livingin areaprovided sourceof customersSource of ? - + -entertainment/recreationProtection - - + -against weather29Relative Advantages of Major Retail LocationsLocation CBD Strip Shopping FreeIssues Center Mall StandingSecurity - - + -Long, uniform - + + + hours ofoperationPlanned - - + -shoppingarea/balancedtenant mixParking - + - +Occupancy ? + - +costs(e.g. rent)30Relative Advantages of Major Retail LocationsLocation City Strip Shopping FreeIssues Center Mall StandingPedestrian + - + -trafficLandlord + + - +controlStrong + + - +competitionTax ? ? ? ?incentives31Other Retail Location Opportunities Mixed Use Developments AirportsResorts HospitalsStore within a StoreRoyalty-Free/CORBIS32Alternative LocationsMixed Use Developments MXDsSkip Nall/Getty ImagesRob Melnychuk/Getty ImagesD. Falconer/PhotoLink/Getty ImagesCivic CentersOffice BuildingsHotels33Alternative LocationsAirportsAirports: Why wait with nothing to do?Rents are 20% higher than mallsSales/sqft are 3-4 times higher than mallsBest airports are ones with many connecting flightsKim Steele/Getty Images34Alternative LocationsResortsCaptive audienceWell-to-do customerCustomers have time to shopRoyalty-Free/CORBIS35Alternative LocationsHospitalsPatients cannot leaveGifts are availableRoyalty-Free/CORBIS36Matching Location to Retail StrategyDepartment Stores  Regional MallSpecialty Apparel Central Business District, Regional Malls Category Specialists  Power Centers, Free StandingGrocery Stores  Strip Shopping CentersDrug Stores  Stand Alone37Shopping SituationsConvenience Shopping Minimize the customer’s effort to get the product or service by locating store close to where customers are locatedThe McGraw-Hill Companies, Inc./Andrew Resek, photographer38Shopping SituationsComparison ShoppingCustomers have a good idea of what type of product they want, but don’t have a strong preference for brand, model or retailer.Ryan McVay/Getty ImagesTypical for furniture, appliances, apparel, consumer electronics, hand tools and cameras.39Category Specialists Consumers can see almost all brands and models in one storeThe McGraw-Hill Companies, Inc./Andrew Resek, photographer40Shopping SituationsSpecialty ShoppingCustomers know what they wantDesigner labelsConvenient location matters lessThe McGraw-Hill Companies, Inc./Andrew Resek, photographer41Environmental Issues“Above-ground” risks - such as asbestos-containingmaterials or lead pipes used in construction.Hazardous materials - e.g. dry cleaning chemicals,motor oil, that have been stored in the ground.Retailers’ Protection Stipulate in the lease that the lessor is responsible for removal and disposal of this material if it’s found.Retailer can buy insurance that specifically protects it from these risks.42Other Legal IssuesZoning and Building Codes Zoning determines how a particular site can be used. Building codes determine the type of building, signs, size, type of parking lot, etc. that can be usedSigns Restrictions on the use of signs can also impact a particular site’s desirabilityLicensing Requirements Some areas may restrict or require a license for alcoholic beverages43