Case 13 Choosing a Store Location for a Boutique Essay

816 Words Mar 20th, 2016 4 Pages
Stephanie Wilson is in her late 30s & has been working with the municipal government ever since college. She is divorced, with two children. She has a flair for fashion & wants her own business, to be able to spend more time with her children. She has taken evening courses in fashion design & retail management. She has to decide location of her ready-to-wear boutique from the following available options: The Downtown Arcade, Tenderloin Village, Appletree Mall. The Downtown Arcade Advantages are the city’s central business district. Arcade renovation has been proposed under a master redevelopment plan, with a new department store & offices. The proposed renovation includes a 3-level shopping facility with 68 shops & a series of restaurants, …show more content…
Disadvantages are the very high annual rent at $28,800 ($24 per sq. feet). It has an additional charge of 1% of sales for mall maintenance & promotion. It also has the longest minimum lease period of 5 years. There is very high competition, there are 9 women clothing retailers already present. And if sales exceed $411,500 rent will be 7% of sales.
Stephanie is planning to open a specialty store & it would be most appropriate in The Arcade & Tenderloin Village. Both the sites are 900 square feet, with great locational advantage in terms of high visibility. The Arcade store is located close to entrance & Village store is on the main street. Both will have a great chance to thrive with considerable presence in the target market. At the Village site, there are already 3 women’s specialty stores operating, hence that will be the best type of store for Stephanie to open. For the Appletree Mall, a shopping store or a large specialized store would be the most appropriate. The available space at 1200 square feet is larger than other two sites & can be made more use of. For upscale clothing, customers would wish to compare prices before making the purchase. Thus, the store should have ample space & enough products to attract customers & allow trial. It should catch the attention of the people walking by, as it is located next to a large department store which would invariably get more visibility & footfalls as compared to

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