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40 Cards in this Set

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  • Back
types of leases
percentage- based on % sales (be sure its coming out of net sales)
- some usually pay % of square footage for maintenance
-most malls use this method
% of sales up to a maximum point of sales
% of sales minimum- no matter how low your sales, you must pay a set amount
sliding scale- as sales ^ rent goes down
Shopping Center
better management controls
-special events for customers
-better security
- parking lot lighting
- outdoor signage- only some store signs are displayed on the outside
- sales must be approved
s
strip center
known as neighborhood + community centers
advantages
convenient
easy parking
low occupancy cost

disadvantages
small trade area
lack of entertainment
no weather protection
power centers
shopping centers w/ big box names (southland park)
open air set up
free standing anchors
usually located to existing malls to capitalize on their trade area
rentorsr like it bc you usuallly have 5 or 6 names that are used to working together and rent quickly
shopping malls
regional shopping malls (less than 1 million square feet)
super regional malls ( over 1 millions sq ft)
- HUGE in Asia
disadvantages/ advantages of shopping malls
advantages
lots of types of stores
a lot of assortments
attract a lot of customers
weather safe

disadvantages
high occupancy host
tenants may not like mgmt
too much competition
challenges facing malls
time pressure- impractical to wander malls
they get rundown and unnappealed
anchor tenants are being shut down (two similar stores, one is cosed down by mgmt)
fashion apparel that is sold in malls experience limited growth
how to make malls better
make shopping more enjoyable (kid care, sofas)
better food
mall redevlopement, renovation
tailor to different demographics
lifestyle centers
located in affluent residential neighborhoods
open air configuration
design ambience and amenities
upscale stores
restaurants and cinemas
smaller department stores
omnicenter
combination of malls, strip centers, power centers, and central business district, and lifestyle centers
how to select a particular location
its a trade off with these characteristics
- size of trade area
- occupancy cost
- pedestrian and car traffic (customer trafic)
-restrictions placed on store/property
- convenience
disadvantages/advantages to free standing stores
advantages
convenient
high traffic and more visibility
modest occupant cost
few restrictions
*drive thru (walgreens)

disadvantages
no fast traffic
no drawing power
gentrification
revamping an old city or bringing the pop back to the cities

advantages
affluency returned
young professionals
returned empty-nesters
jobs
low occupancy costs
incentives by city to move
factors in selecting store and site
strategic fit taget mkt- if you want to open a high end store, you better make sure that the trade area has peeps that got da skrilla to spend on the items
economic conditions- are they stable enough to make the purchase
competition-supply must equal demand, lack of competition not good
cost of operating store- supply your store efficiently
how many stores to open
economies of scale:
one promotional costs for all stores-justifies distribution activity to retail stores
OR
based on cannibilization- open stores as long as they dont take away sales from existing stores
Central business disctrict
advantages
draws people into area during business hours
hubs for public transportation (l-train)
pedestrian traffic
residents

disadvantages
high security required (expensive)
shoplifting a problem
poor parking
evenings/weekends are slow

kind of like center court
terms of lease (clauses)
prohibited use clause- limits the landlord from leasing to certain peeps
-sometimes stores take up parking spots without making heavy foot traffic (bowling alley, dentist)
- some harm the image (hustler hollywood)
Executive use clause- prohibits tenants from leasing to peeps in competition
escape clause- allows retailer to leave if sales haven't reached potential in given years.
- or if a co-tenant leaves the center as well (big name leaves, no one comes)
how efficient supply chain leads to higher ROI
return on assets= profit margin x asset turnover

increaseses sales bc you have more attractive assortment in stock
improves net profit margins from increasd gross margin bc of lower expenses
lowers inventory bc you have less in stock and increases asset turnover
data warehousing
copying, storing info in a readily accessible and ready to analyze system.
(walmart)
data mining
uses for retailers from data warehouse by finding usable patterns to build customer loyalty

-market basket analysis- consumers who buy a certain product group will most likely buy a related product category (beer and crisps)
-identifying mkt segments
-identify best customers to keep them happy
types of trade area zones
primary-60-65% of customers
secondary-20% of customers
tertiary- occasional custoemrs

usually based on drive time or geographic distance
factors affecting trade areas
accessibility, natural barriers
type of shopping center
breadth of assortment of shops around you as well as inventory
competition and parasite stores
ways to measure trade area
customer spotting- getting zip codes, loyalty cards, license plate)
census data- good info but too old by the time its released, doesn't catch everyone out there

Geographic Information System (GIS)- literally maps out, anaylyzes geographic data. combine maps (rivers, mtns) with lifestyle, census data etc
competition in trade area
destination store
peeps consciously go to the store

parasite stores are stores positioned close to this store and feed off their trade area
(party city)
evaluations for retail site
consider:
characteristitcs of the site
characteristics of trade area
estimated potential sales
traffic flow
road patterns
parking
tenants/competition
direct benefits (already have card, name them without ROI)
increased sales from better assortment in stock
less inventory, higher asset turnover
net profit margins increase bc expenses decrease
spending potential index (SPI)
avg amount spend on product/service by a household in that trade area
based on 100 (ie wendys was 159 so 59% better than national average)
market potential index (MPI)
number of households purchasing a product or service in a trade area
locations within Shopping enter
affects costs and sales
in strip center- closest to supermarket wins bc of impulse buying
in mall- group together if similar stores near anchor store
3 ways to estimate demand
huff's gravity model- as size of store increases and distance bt consumer and store decreases, the propability of the customer VISITING increases
multiple regression analysis- factors affecting the sales of EXISTING stores and see if they affect new store. must have a shit ton of info
analog approach- look at best trade area for best store out there and find similar ones
-involves competition analysis
-defining trade area
- analyze the trad area
-match these characteristics to potential area
electronic data interchange
computer to c omputer exchange of business documents bt retailers and vendors
-tells you merchandise sales, inventory, advanced shipping/inventory notices
standards
- UCS uniform communication standard
-VICS voluntary interindustry communication standard
communication system
- intranet on LAN
-extranet (internet that connects errrybody)
advanced shipping notice (ASN)
tells distribution center what is coming to them and when. the dist center then makes appointments for trucks to deliver them
push vs pull supply chaing mgmt
push: delivers items to retailers based on forecasted sales

pull: based on POS data and how much shit is being sold.
-advantages: less stock out
increases inv. turnover
responds to demand efficiently
great when demand is uncertain
category managers
in charge of merchandise that consumers will likely see as substitutes.
accumulative attraction
the theory that the more stores/ attractions you have, the more visits you will get from a consumer
centralized advantages
reduces overhead by making less responsibility on regional mngers
you coordinate all stores so prices fall
best peeps making best decisions
centralized disadvantages (decentralized advantages)
keeps regnl mngers from making appropriate customizations to local mkt
keeps them from being able to adapt to local competition and wages
planner
in charge of ALLOCATING the merchandise and planning them for a specific geographic location
buyers
get the merchandise they see that will sell, negotiates prices, setting store prices, managing inventory, in charge of latest fashions.
3 issues in HR management
1)importance of having diverse workforce- employees have different needs and require different programs to meet them.
2)growing legal restrictions on HR practice 3)use of technology to incese employee productivity