Quiz 10: Site Selection


Strategy used to open new outlets: Implementing a combination of "isolated location", "unplanned business districts" and "planned shopping centers" would be an effective strategy for the firm to open new outlets since it gives the firm a collective advantage of all the strategies. It is an advantageous situation for the firm, because even in case of facing few drawbacks with one strategy, it can be nullified by the advantages gained from other implemented strategies. Implementing a mix of all the strategies will prevent the firm from facing extremely awful situations. Thus, the firm can implement all the strategies.

Advantages of locating in unplanned business districts: • High level of customer turnover due to availability of wide range of products in one area • Availability of a wide range of goods and services • Generally close to commercial and social facilities • Different types of store, and positioning strategies within one area would be easily accessible • The promotion of one firm can serve as an advantage for other parasite stores since it is collectively situated. Advantages of locating in planned business districts: • Formation of distinctive but unified shopping centre image • Provides one-stop family shopping experience • Availability of parking for consumers and accessibility to highways • Lower rent and tax rates compared to "Central Business District" • Normally, the theft rates are lower as compared to "Central Business District".

Central business district (CBD) CBD is the retailing hub of the city. It is identical with the term downtown. These normally exists where the density of office buildings and stores are high. A CBD has one major department store and a number of specialty and convenience stores. It doesn't follow a pre-set format; it depends on retail trends, retail trends and luck. Secondary business district (SBD) A SBD is an unintended shopping area in a city or town that is situated at the junction of two major streets. It offers products and services similar to central business district but these generally contains smaller stores with less width and depth of merchandise range and a smaller trading area. Neighborhood business district (NBD) A NBD is another type of unplanned shopping area that satisfies a single residential area's needs of comfortable shopping. It contains numerous small stores such as dry cleaners, stationary store, barber shop and a restaurant. It is mainly situated on the major streets of the residential area. String A string is an unintended shopping area that contains retail stores often with similar or well-matched product lines. It is generally situated along a street or highway. It may start as an isolated store then breed competitors.