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STEPS IN SELECTING THE BUSINESS LOCATIONS FOR RETAILERS 1. Choosing a viable community 2. Selecting the trading area 3.

Evaluating specific site 1. CHOOSING A VIABLE COMMUNITY A viable community is one that has the capacity to provide an adequate and profitable sales volume for small businesses. 3 FACTORS USED TO DETERMINE THE BEST GEOGRAPHIC AREA FOR THE BUSINESS ECONOMICS Areas with stable economic base must be chosen by the SBO. An economically stable area is one which has balanced mix of business establishment. POPULATION Information about the characteristic of population relevant to the location decision must be obtained. IMPORTANT POPULATION ASPECT THAT MUST BE VIEWED * Size of population of the area under consideration * Average income of the potential Customers * Population changes in recent years COMPETITION No matter how large the area is, it can only support a certain number of competing firm. If too many of the same type of business are located in one are, they may have difficulty in obtaining the sales volume they desire. Some may get bankrupt in process.

2. SELECTING THE TRADING AREA TYPE OF LOCATION THE CENTRAL BUSINESS DISTRICT Refers to unplanned shopping area around the geographic point at which all public transportation system converge. In a typical provincial city, the center of CBD is the public market which is surrounded by bus and jeepney stations. Adjacent to this station are the mini marts, groceries and some specialty shops.

ADVANTAGES OF LOCATING IN THE CBD: a. Easy access to the public transportation b. Proximity to commercial activities c. Wide product assortments DISADVANTAGES OF LOCATING IN THE CBD: a. b. c. d. Inadequate parking Older stores High rents and taxes Potential high crime rates

THE SHOPPING CENTER Refers to a centrally owned or manages shopping district which is planned, has balanced tenancy and is surrounded by parking facilities. ADVANTAGES OF SHOPPING CENTER TO RETAILERS: a. b. c. d. e. Heavy customer traffic. Nearness to population Access to highway and availability of parking Lower crime rates Clean and neat environment

DISADVANTAGES OF SHOPPING CENTER TO RETAILERS: a. b. c. d. e. Inflexible store hours High rents Restriction as to merchandise the retailer may carry Possibility of too much competitions Dominance of smaller stores by the lead stores

FREE STANDING STORES Is generally located along major traffic arteries without any adjacent retailer selling competing products to share traffic.

ADVANTAGES OF FREE STANDING RETAILERS: a. Lack of direct competition b. Generally lower rents c. Freedom in operations and hours DISADVANTAGES OF FREE STANDING RETAILERS: a. b. c. d. Difficulties of attracting customers for the initial visit Higher advertising and promotional cost Possible cash outlays in constructing stores instead of renting Zoning ordinances that may restrict some activities