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62 Cards in this Set
- Front
- Back
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Factors Affecting the Demand for a Region or Trade Area
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strategic fot with target market, competition,economic conditions, cost of operating stores
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why are Some retailers are going urban?
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-Lack of competition
-High level of disposable income -Large, untapped labor force |
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what are some examples of a Strategic Fit?
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Ann Taylor – High income, dual career families
Hot Topic – teen, pop culture, grunge McDonald’s – families with kids REI – outdoor enthusiasts |
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do Operating Costs vary across areas?
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yes
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operation costs are affected by what?
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proximity of area considered & other areas where retailer operates
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When evaluating and selecting a specific site, retailers consider what?
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-The characteristic of the site
-The characteristic of the trading area -The estimated potential sales that can be generated |
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what is an example of traffic flow and accessibility?
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-access to major highways
- street congestion - pedestrian traffic - |
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what are some examples of site restrictions?
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-zoning
-signage -restrictions on tenant mix - safty code restrictions |
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what are some location characteristics?
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-parking spaces
-access to store entrance and exit -visibility of store from street - adjacent retailers |
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what are come cost characteristics?
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-rental fee
-common area maintance cost -local taxes advertising and promotion fees - length of lease |
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what are some effects of traffic flow on retailers?
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-When traffic is greater, more customers shop
-Good for convenience retailers -Not necessary for destination retailers -Too much can impede access to store |
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is Accessibility to store is as important as traffic flow?
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yes
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What Should Retailers Consider for Parking?
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-Observe shopping center at various times
-Employee parking availability -Shoppers that use cars -Parking by non-shoppers -Typical length of a shopping trip |
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what dose the principal of cumulative attraction?
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It is the power to increase the traffic at a certain store by being need their competition.
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trade area is measured by what? How should it be measured instead?
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It is CURRENTLY measured in MILES but it should really be measured in MINUTES.
inconsistant traffic patterns make it hard to do this. |
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what is the primary trade area?
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50-75% of customers
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what is the secondary trade area?
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20-30% of customers
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what is the tertiary trade area?
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where the occasional shopper comes from
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Factors effecting Trade Areas are:
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-Accessibility
-Natural & Physical Barriers -Type of Shopping Area -Type of Store -Competition -Parasite Stores |
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what is a parasite store?
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a place that locates themselves by a destination spot in get its customers.
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what are some ways to Measure a Trade Area?
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-Customer Spotting
-Use Census Data -Geodemographic Information Systems (GIS) -Information on Competition -Yellow Pages |
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explain GIS, geographic information systems
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system of hardware and software used to store, retrieve, map and analyze geographic data along with the operating personnel and the data that goes into the system
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how can sales potential be assessed?
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-Market Potential Index (MPI)
Number of Households Purchasing a Product or Service in a Trade Area -Spending Potential Index (SPI) Average Amount Spent on a Product or Service by a Household in a Trade Area |
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what are the 3 main Retail Strategy Basics?
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Get shoppers into your store - Traffic Strategy
Convert those shoppers into customers by having them purchase merchandise - Conversion Strategy Do this (get shoppers in your shop and convert them into customers) at the lowest operating cost possible that is consistent with the level of service that your customers expect - Cost Management Strategy |
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what is the conversion rate?
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the percentage of shoppers who become buyers
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what are some ways to improve conversion rate?
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change store layout, display, merchandising and staffing
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what is the single most important factor in determining how much a shopper will buy?
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the amount of time a shopper spends in the store.
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define interception rate
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percentage of customers who have some contact with an employee.
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true or false: the more shopper-emplyee contacts that take place, the greater the average sale.
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TRUE
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What is the most important factor in customer satistaction and why
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waiting time because when shoppers are made to wait too long in line or anywhere else their impression of overall service plunges
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what is an example of buisnessperson ignorance?
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not knowing who their shoppers are
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what is an example of stores not knowing who their customers
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pet stores stocking pet treats on high shelves when typically elderly people or children are the one shopping for that product
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define freestanding store
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retail locations for an individual, isolated store unconnected to other retailers
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advantages of freestanding store
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convenience for customers (parking east access) modest occupancy costs
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define merchandise kiosks
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small, temp selling spaces typically located in the walkways of malls, airports etc
between 40 and 500 square feet often opperate seasonally |
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define central business district(CBD)
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traditional downtown business area in a city or town
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define main street
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traditional shopping area of smaller towns or secondary business district in a suburb or within a largeer city
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define inner city
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in the US is a high-density urbn area consisiting of apartment bulidings populated promaraly by lower income consumers.
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define shopping center
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group of retail and other commercial establishment that is planned, developed, owned, and managed as a single property
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neighborhood/community/shopping center
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attached row of stores managed as a unit with onsite parking in the front of the store
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neighbrohood centers are typically anchored by what
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super markets or drugstores
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community centers have what type of anchors besides a super market
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discount stores, or catagory specialist (clothing,pet supplies etc)
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power centers consist of what?
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discount stores, off price stores and warehouse clubs
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define shopping mall
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enclosed, climate controled, lighted shopping centers with retail stores on one or both sides of an enclosed walkway
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define lifestyle centers
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centers with open air configuration of upscale specialty stores, entertainment and resteraunts and amenities such as fountains and street furnature.
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fashion/specialty centers
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shopping centers conposed mainly of upscale apparal shops, boiutiques and gift shops carryind selected fashions or unique merchandise of high quality and prices
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define omnicenters
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centers that combine mall, lifestyle, and power centers.
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define mixed use developments (MXDs)
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combine several different uses in one comples including shopping centers, hotles,convention centers etc
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convience shopping situations
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when customser is primarly concerned with minimizing their effort to get the product/serv they want
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specialty shopping
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customer knows what they want and they will not accept any subsitute
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define understored
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a condition in which an area has too few stores to satisfy the needs of local consumers for spicific merchandise and services.
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trffic flow
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number of vehicles and pedestrians that pass by the site
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give an ex of a natural and artificial barrier
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natural- river, mountain
artificial- railroad tracks |
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cumulative attraction
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when a cluster of similar and complementary retailing activites will generally have greater drawing power then isolated stores that engage in the same retailing activities.
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define customer spotting
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the process of locating the residences of customers for the store on a map and displayinh their positions relative to the store location.
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what is a metro renter
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young, well educated singles begining their professional careers in the largests cities such as new york, LA and chicago
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what is the spending potential index (SPI)
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compares the average expenditure for a particular product or service to the amt spent on a product or serv nationally.
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what is the huff gravity model
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extimates the sales of a retail store based on the concept of gravity: the force of attraction is based on the size of the store and the amt of time it takes to get to the store.
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what is the analog approach?
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when the retailer describes the site and trade area characterists for its most successful stores and attemps to find a site with similar characterists
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percentage lease
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rent is based on the percentage of sales
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fixed rate lease
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most commonly used by community and neighborhood centers. retailers pay a fixed rate per month over the life of the lease.
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outparcel
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a buliding or kiosk that sits in the parking lot of a shopping center but is not physically attached to the center.
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