Chapter 9

Site Selection

Irwin/McGraw-Hill
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Levy/Weitz: Retailing Retailing
Levy/Weitz: Management, 4/e
Management, 4/e Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
PPT 9-1
Three Levels of Spatial Analysis

Regional Trade area Site

Analysis Analysis Analysis

McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Levy/Weitz: Retailing Management, 4/e
 Factors Affecting Demand
for a Region or Trade Area

McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Levy/Weitz: Retailing Management, 4/e
PPT 9-3
Factors Affecting Attractiveness
of a Site: Accessibility

• Road pattern and condition

Macro analysis
• Natural and artificial barriers
• Visibility
• Traffic flow
• Parking Micro analysis
• Congestion
• Ingress/egress

McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Levy/Weitz: Retailing Management, 4/e
PPT 9-4
Locational Advantages
within a Center

• Better locations cost more

• Shopping goods stores should be
clustered

Principle of cumulative attraction - a cluster of similar

and complementary retailing activities will have greater
drawing power.

McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Levy/Weitz: Retailing Management, 4/e
PPT 9-6
Estimating demand for a new location

Trade area The source to get customers

Primary zone - 60 to 65 percent of its customers

Secondary zone - 20 percent of a store’s sales

Tertiary zone - customers who occasionally shop

at the store or shopping center

McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Levy/Weitz: Retailing Management, 4/e
 Factors Defining Trade Areas

• Accessibility

• Natural & Physical Barriers

• Type of Shopping Area
• Type of Store
• Competition

McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Levy/Weitz: Retailing Management, 4/e
PPT 9-9
Customer Spotting

Purpose: to spot, or locate, the residences of

customers for a store or shopping center.

How to obtain data:

• credit card or checks
• customer loyalty programs
• manually as part of the checkout process
Demographic data vendors specialize in repackaging
and updating census-type data.
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Levy/Weitz: Retailing Management, 4/e