Retailing Management Study Set 4
Quiz 7 :
Store location refers to the physical presence of the retail store at a particular location targeting its customers. Store location is such an important decision for retailers because to open a store, the retailer has to invest huge capital in terms of finding a property, building a store, filling stock of products, hiring staff, paying taxes, etc. Above this, unless the store's location will be appropriate and approachable to the targeted customers, the store will fail to attract its key customers and this way the store will be unsuccessful in its business. When the retail store is well-connected and is located at a proper place, it provides ease for supply and distribution of goods. The store that is located at an appropriate area facilitates the suppliers and distributors to supply products and move them ahead in the distribution pipeline. Similarly, a store that is located at a desired place is capable of changing the buying habits of the consumers. When the consumers residing at particular regions will be able to easily access the store, then the customers become loyal to the store which increases the firm's profits and sales. These are the reasons store location is such an important decision for retailers.
Students store choices will likely vary considerably. The store's target market must be clearly defined. And then the location should give the store a competitive advantage with the target market they have defined. ?Store: Urban Outfitters ?The target market for this store can be defined as young men and women from ages 16 to 25 that live in the city or want the urban look. The best location for this store would be in a central business district. This is a traditional downtown business area in a city or a town. The store will draw from the business activity of the downtown area. There is an inflow of people from public transportation and a high level of pedestrian traffic. ?Store: The GAP ?The primary target market segments for this store are men and women ranging from as young as 15 to 40 years old looking for value in basic clothing. The best location for this store would be in a shopping center, particularly a mall. A shopping center consists of a group of retail and other commercial establishments that is planned, developed, owned, and managed as a single property. A mall focuses on pedestrians and gains its advantage because it can have a set of stores that carry similar merchandise assortments. The target market looking for basics, can shop at the GAP and also shop at complementary stores nearby. This allows the target market to have a one stop shopping experience. ?Store: Verizon ?The target market segments of Verizon are men and women ages 18 and up looking for a cellular phone for convenience and safety. A great location for Verizon would be a kiosk. A kiosk is located in mall common areas, is stationary, and has many conveniences of a store such as telephones, electricity, and moveable shelves. Advantages of these selling spaces are the prime mall locations, the relative inexpensiveness, and the short-term leases available, which reduce owner's risk. This is a perfect location for a Verizon store because the items are very small and require little shelf space. A customer looking to get a phone, does not need a lot of frills, but instead wants the information and the phone at a convenience. Also this location will appeal to their target market. As they walk down the mall they may be induced to purchase without previous planning.
Store location refers to the physical presence of the retail store at a particular location targeting its customers. Company HDD is a furniture brand that offers various kinds of furniture to the customers through its stores as well as through online platforms. It is mentioned that HDD opens it stores either at a power center or at a freestanding site. Power center refers to the store location that is a large space of 250,000 to 750,000 square feet area where retailers and restaurants open their businesses and serve the customers. Freestanding site refers to the store location that is located at a street and not in a shopping mall or a power center. The strengths of power center for Company HDD's improvement as a retailer can be that large number of customer footfall in the store can be expected as people often visit malls and power centers to buy everything under one roof. When firms open their stores at power centers, it easily builds employee trust owing to the fact that power center is a recognized place and the stores running in it gets credibility of the power centers which helps in building customer trust over the products sold at the stores located at this site. The strengths of freestanding site for Company HDD's improvement as a retailer can be that the stores located at freestanding sites do not carry competition in the nearby area which helps the store operator to enjoy exclusive selling to the customers and offer customized services to them. The rent is typically low when it comes to freestanding sites, large parking space can be provided to the customers, and the visibility of the freestanding sites is quite high as compared to stores located in shopping malls.