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40 Cards in this Set
- Front
- Back
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types of leases
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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 |
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Shopping Center
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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 |
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strip center
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known as neighborhood + community centers
advantages convenient easy parking low occupancy cost disadvantages small trade area lack of entertainment no weather protection |
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power centers
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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 |
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shopping malls
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regional shopping malls (less than 1 million square feet)
super regional malls ( over 1 millions sq ft) - HUGE in Asia |
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disadvantages/ advantages of shopping malls
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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 |
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challenges facing malls
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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 |
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how to make malls better
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make shopping more enjoyable (kid care, sofas)
better food mall redevlopement, renovation tailor to different demographics |
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lifestyle centers
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located in affluent residential neighborhoods
open air configuration design ambience and amenities upscale stores restaurants and cinemas smaller department stores |
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omnicenter
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combination of malls, strip centers, power centers, and central business district, and lifestyle centers
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how to select a particular location
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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 |
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disadvantages/advantages to free standing stores
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advantages
convenient high traffic and more visibility modest occupant cost few restrictions *drive thru (walgreens) disadvantages no fast traffic no drawing power |
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gentrification
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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 |
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factors in selecting store and site
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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 |
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how many stores to open
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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 |
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Central business disctrict
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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 |
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terms of lease (clauses)
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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) |
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how efficient supply chain leads to higher ROI
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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 |
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data warehousing
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copying, storing info in a readily accessible and ready to analyze system.
(walmart) |
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data mining
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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 |
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types of trade area zones
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primary-60-65% of customers
secondary-20% of customers tertiary- occasional custoemrs usually based on drive time or geographic distance |
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factors affecting trade areas
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accessibility, natural barriers
type of shopping center breadth of assortment of shops around you as well as inventory competition and parasite stores |
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ways to measure trade area
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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 |
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destination store
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peeps consciously go to the store
parasite stores are stores positioned close to this store and feed off their trade area (party city) |
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evaluations for retail site
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consider:
characteristitcs of the site characteristics of trade area estimated potential sales traffic flow road patterns parking tenants/competition |
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direct benefits (already have card, name them without ROI)
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increased sales from better assortment in stock
less inventory, higher asset turnover net profit margins increase bc expenses decrease |
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spending potential index (SPI)
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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) |
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market potential index (MPI)
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number of households purchasing a product or service in a trade area
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locations within Shopping enter
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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 |
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3 ways to estimate demand
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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 |
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electronic data interchange
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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) |
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advanced shipping notice (ASN)
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tells distribution center what is coming to them and when. the dist center then makes appointments for trucks to deliver them
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push vs pull supply chaing mgmt
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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 |
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category managers
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in charge of merchandise that consumers will likely see as substitutes.
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accumulative attraction
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the theory that the more stores/ attractions you have, the more visits you will get from a consumer
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centralized advantages
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reduces overhead by making less responsibility on regional mngers
you coordinate all stores so prices fall best peeps making best decisions |
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centralized disadvantages (decentralized advantages)
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keeps regnl mngers from making appropriate customizations to local mkt
keeps them from being able to adapt to local competition and wages |
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planner
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in charge of ALLOCATING the merchandise and planning them for a specific geographic location
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buyers
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get the merchandise they see that will sell, negotiates prices, setting store prices, managing inventory, in charge of latest fashions.
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3 issues in HR management
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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 |
