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27 Cards in this Set
- Front
- Back
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metropolitan statistical area MSA
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because consumers tend to shop within an MSA and media coverage and demographic data for analyzing location opportunities often are organized by MSA
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What dose MSA and MiSA look at (4)
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1. the economic condition
2. competition 3. strategic fit 4. cost of operating sore |
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Economies of scale from multiple stores
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opening a lot of stores to save money
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Evaluation a site for location a retail store
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1. site characteristics
2. characteristics of the trading area for a store 3. estimated potential sales |
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Site characteristics 3.
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1. traffic flow
2. location '3. cost |
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Traffic flow
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number of vehicles and pedestrians that pass by the site
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accessibility (2 types)
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is the ease with which a customers can get into and out of the site
natural barriers- mountain artificial- railroad tracks |
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Location characteristics
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1. parking
2. visibility 3. adjacent tenants |
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Trade area
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is continuous geographic area that accounts for he majority of a stores sales and customers
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Primary trade area
Secondary Tertiary |
1. 50 to 70 of customers
2. 20 to 30 remanding |
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Customer spotting
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is the process of locating the residences of customer for a store on a map and displaying their positions relative to the store location
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Geographic information system
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is a system of hardware and software used to store, retrieve, map and analyze geographic data
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Spending potential index ( SPI)
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local average expenditure by product to the national average amount spent
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Huff gravity model
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consumer are attracted to a store location, probability of customer going, siez of store, travel time
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regression analysis
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approach is based on the assumption that factors that affect the sales of existing stores in a chain will have the same impact on store located at new sites being considered
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analog approach
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the retailer simply describes the site and trade area characteristics for its most successful stores and attempt to find a site with similar characteristics
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Percentage lease
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lease is based on percentage of sales
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percentage lease with a specified max
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is a lease that pays the lessor and landlord a % of sales up to a mx amount
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percentage lease with a specified min
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specifies that the retailer must pay a min rent no matter what
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sliding scale lease
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in which the % of sales paid as rent decreases as the sales go up
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Fixed rate lease
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fix amount per month
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graduated lease
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in which rent in creases by a fixed amount over a specified period of time
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maintenance increase recoupment lease
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landlord can increase rent if insurance, taxes or utility increases
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countenance clause
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requires that certain percentage of shopping center is leased
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prohibited use clause
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limits the landlord from leasing to certain kins of tenants
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exclusive use clause
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prohibits the landlord form leasing to retailer that sell competing products
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outparcel
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is a building that sites in the parking lot of a shopping center but is not physically attached to the center
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