Store Location

Importance

Wrong Merchandise Variety, Wrong Pricing etc

VS

Wrong Location

Factors to be considered

i.

i.
ii.

Customer
Need in terms of location

General Area
Catchment area analysis
Rural, Urban, Suburban

Trading area and Specific Site

analysis

General area analysis

Catchment area:
The area form which a shopping centre draws its customers.
a)

Business attractions of the shopping centre

Types of major store

Merchandise offered
Delivery, credit and other retail services
Banking facilities
Car parking

b)

Social and leisure attractions

Population of area
Density of population
Type of consumers
Distance to travel
Lines of transportation and communication
Car ownership in the market

Selection of a locality
Urban, Suburban, Rural
Factors to be considered while selecting a locality
Labor and wages
Community facility
Banking facility
Local Taxes
Water supply
Traffic flow
Security

Merits & Demerits of Urban Area

MERITS

Low cost of acquisition and distribution

Transport facility
Municipal services
Means of advertizing
Skilled and unskilled employees
Storage facility

DEMERITS

Cost of land is high

Taxes are high
Roads are congested
Najaiz Tajawazaat
Cost of labor
Restrictions on constructing Multi Stories

Merits and Demerits of Suburban

Area
Merits

Availability of adequate Land

Infrastructural facilities are available
Skilled workers
Expansion can easily be done
Major benefits of urban area

Trading area and Specific Site

Analysis

Connectivity and ease of Traffic Flow

Parking Facility
Cost Effectiveness
Presence Of Competitors
Visibility of store
Local Laws
Demand Density and Supply density
Lease agreement and infrastructure facility

Recent Trends in Store

Location
1.
2.
3.
4.

Preference to Suburban Areas

Increased Government Interference
Establishment of commercial estates/areas and parks
Competition between Government and private estate
developers