4.Site+Selection IIPM

8/8/2019 4.Site+Selection IIPM

http://slidepdf.com/reader/full/4siteselection-iipm 1/22

4. SITE SELECTION

1. Types of Location

2. Choice of a General Location

3. Location and Site Evaluation4. Terms of Occupancy

5. Overall Rating



Types of Locations

Isolated Store

Unplanned Business District ± Central Business Dist

± Secondary Business Dist ± Neighbourhood Business Dist

± String

Planned Shopping Center

Regional Shopping Center Community Shopping Center

Neighbourhood Shopping Center



ISOLATED STORE

Freestanding retail outlet located on either on a highway or a street

Off shoot of resentment from traditional retailers not to allow discountersto spread

Strengths:

No competition, low rental costs, no group rules, larger space, location by

choice, better road and traffic visibility, customized setting, easy parkingetc.

Weaknesses:

Difficult to attract initial customers, may not travel far on continuousbasis, variety missing in shopping, high advertisement costs

Operating costs ± lighting, security, maintenance of grounds and trashcollection cannot be shared

Access to desirable locations restricted due to community zoning laws Store has to be built rather than rented

Unplanned districts have edge over this format in terms of volume of sales



Unplanned Business District

(U

BD) Retail location with two or more outlets in

close proximity to each other

Evolved in a gradual and piecemealpattern

Formed by conversion of existing buildings

for retail use and shared among a number

of companies and owners

No long range planning and mix of stores



UBD- Central Business Dist

One of the unplanned site formats

Catching up in planned manner in out-of-town developments

No. of retailers coexist with an oversupply of retail businesses

No quotas on the number of types of retailers

Strengths:

Variety of retail choice in a single area Comparative prices, higher pedestrian traffic

Access to public transportation

Savings in time by utilizing different stores

Weaknesses:

Traffic congestion and parking problems

Problems of organizing deliveries High rents and taxes

Poor condition of properties in older city centres

Problem of recruiting and retaining the staff

Travel is expensive to the Centre



UBD ± SECONDARY BUSINESS

DISTRICT Unplanned shopping area

Bounded by intersection of two major streets / cities

Location gaining importance due to growth of cities

Strengths:

Compared with CBD, the weaknesses are relatively low

Weaknesses:

Discontinuity in offerings

High rent and taxes (not as high as CBD) Traffic and delivery-congestion

Aging facilities, parking difficulties

Fewer outlets than in CBD



UBD-NEIGHBOURHOOD

BU

SINESS DISTRICT Unplanned shopping area catering to a single residential area

Contains several small stores ± dry cleaner, stationery store, barber shop, beauty salon, liquor store, restaurant.

Leading retailer would be a supermarket/ a large drug store/ arestaurant

Situated in major streets of residential area

Strengths:

Offers a good location, long store hours

Good parking and a less hectic atmosphere than CBD or SBD

Weaknesses:

Limited selection of goods and services

Prices are higher

Less competition than in a CBD or SBD



UBD-STRING

Comprises a group of retail stores with compatible product lines

Located along a street or highway

Car dealers, antique stores, clothing stores are good examples of strings

Strengths

Has advantages of an isolated stores

Lower rent, more flexibility, better road visibility and parking andlower operating costs

Weaknesses: Limited product variety

Increased travel for many consumers

Higher advertising costs

Zoning restrictions



PLANNED SHOPPING CENTRE

Architecturally planned with unified theme for number of outlets

Deliberately developed site with complementary retail outlets

Market catchments achieved through amalgam of different retailers

Strengths:

Balanced and comprehensive retail offers

Freedom to shop in comfort to satisfy all needs in single centre

Increased security and reduction of theft

Weaknesses:

Inflexible rental agreements such as opening and closing hours Higher rents, restrictions on the types of goods sold

Small stores may not be successful



REGIONAL SHOPPING CENTRE

Large, planned shopping facility

Attracts geographically dispersed market

Has one or two large departmental stores

Minimum space of 1,00,000 Sq. feet

50 to more than 150 smaller retailers

Broad and deep assortment of goods and

services

Caters to a minimum of 1,00,000 shoppers in the

vicinity of 30 minute drive



COMMUNITY SHOPPING

CENTRE Moderate in size and planned store facility

with branch departmental store

Composition of several smaller stores Offers moderate assrotment of goods and

services

Caters to 20,000 ± 1,00,000 population Balanced tenancy

Long-range planning



NEIGHBOURING SHOPPING

CENTRE Planned shopping format with a larger store ± a

supermarket/ a drug store

Other retailers include a bakery, laundry, dry

cleaner, stationary store, barber shop or beautyparlor, hardware store, restaurant, liquor store,

gas station etc.

Focus is on convenience-oriented goods andservices

Serves 3,000 ± 50,000, within 15 minute drive



CHOICE OF GENERAL

LOCATION

Careful evaluation and choice of specificsites

Isolated store ± a highway or a sidestreet?

UBD- CBD? SBD? NBD? or a String?

Planned area ± Regional, Community or

Neighbourhood shopping centre? Position of store in a block, side of street,

terms of tenancy



LOCATION AND SITE

EVALU

ATION Assessment of general locations and

specific sites within them

Pedestrian Traffic Vehicular Traffic

Parking Facilities

Store Composition Specific Site



PEDESTRIAN TRAFFIC

No. and type of people pass by

Separation of the count by age and gender

Division of the count by time Pedestrian interviews

Spot analysis of shopping trips



VEHICULAR TRAFFIC

Quantity and characteristics of vehicular

traffic

Trafic counts Extent and timing of congestion

Driving time and driving difficulties



PARKING FACILITIES

Number and quanlity of parking spots

Distance from store sites

Employee parking

4 ± 5 parking spaces per 1000 sq.ft.

Nonshoppers parking may be charged

Validation of shoppers parking

Double-deck parking tiers Large parking space than required ± a

disadvantage





SPECIFIC SITE

Visibility

Placement ± corner-influence

Size and shape of lot Size and shape of building

Condition and age of the lot and building



TERMS OF OCCUPANCY

Ownership Vs. Leasing

Ownership is common for small stores or at inexpensive locations

No threat of vacation by the owner

Flexible and customized structure possible

High initial costs

Long-term commitment

Inflexibility in changing sites



TYPES OF LEASES

Straight Lease ± Periodic fixed rent

Graduated Lease ± Rent increases by a fixed amount at specified periods, yardstick being

inflation or fixed increase

Percentage Lease ± Rent linked to percentage of sales

± Gives protection to retailer

± Minimum rent + maximum increase

Maintenance Recoupment ± Landlord has a right to increase rent on the proof of increase in

insurance, taxes, utility bills Net Lease

± Retailer is responsible for all maintenance and utility charges

± Rent is more stable for property owner



OVERALL RATING

The last task in selection of a general

location and specific site

Computation of overall ratings Performance of all the criteria

Comparison of alternative locations

Date post:	09-Apr-2018
Category:	Documents
Upload:	vishi-sharma
View:	220 times
Download:	0 times

4.Site+Selection IIPM

Documents