strategic planning

5/21/2018 Strategic planning

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PPT 7-1

5thEdition


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PPT 7-2

McGraw-Hill/IrwinLevy/Weitz: Retailing Management, 5/e Copyright !""# $y %he McGraw-Hill Companie&, Inc' (ll right

Retail LocationsRetail Locations

Chapter 7Chapter 7


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PPT 7-3

Retailing Strategy

Retail Locations

Chapter 7

Site Locations

Chapter 8

Human Resource

Management

Chapter 9

Information and

Distribution

Systems

Chapter !

Customer

Relationship

Management

Chapter

Retail Mar"et and

#inancial Strategy

Chapter $% &


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PPT 7-4

What Are theThree Most Important Things in Retailing?

Location! Location! Location!


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PPT 7-5

Retail Locations

Shopping Centers

Strip Shopping Centers

Shopping Malls

City or 'o(n Locations

Inner City

Main Street

#ree Standing Sites

)ther Location )pportunities


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PPT 7-6

Types of Strip Shopping Centers

'raditional

Mom and *op Local Merchants%Children+s *lace% ,ap-ids%.loc"buster /ideo

*o(er Centers

'arget% Home Depot% )ffice Depot%*etsMart% .est .uy% Sports 0uthority%'oys R 1s


7/27PPT 7-7

Elements in Retail Mi

CstomerSer"ice

Merchan#iseAssortment

$ricingCommnication

Mi

Store %isplayAn# %esign

Location Strategy


8/27PPT 7-8

Strip Shopping Centers


9/27PPT 7-9

Types of Shopping Malls

Regional Centers

Sperregional Centers

Lifestyle Centers&ashion'Specialty Centers

(tlet Centers

Theme'&esti"al Centers

Merchan#ise )ios*s


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Shopping Malls


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The Largest +,S, Shopping Malls


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$ro-lems &acing Regional Malls

. Competition from Alternati"e/ MoreCon"enient Locations

. &ocs on Apparel Wea* Apparel Sales

. Aging

. %emographic Shifts


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The Most Epensi"e ShoppingStreets in the Worl#

Street Location Cost 2 s3 foot 2 year

&ifth A"ene 012th to32th St,4

37th Street 03th A"e,to Ma#ison A"e,4

(for# Street

Ma#ison A"ene 037thto 75n# St,4

A"e, #es ChampsElysee

6e 8or* City

6e 8or* City

Lon#on

6e 8or* City

$aris

932:

93::

91::

9;73

9;


14/27PPT 7-14

Tra#eoff =eteen Locations

Rent

'raffic

There are relati"e a#"antagesan# #isa#"antages to consi#erith each location,


15/27PPT 7-15

Relati"e A#"antagesof Ma>or Retail Locations

Location City Strip Shopping #ree

Issues Center Mall Standing

Large sie @ @ #ras people

to area$eople @ @ or*ing'li"ing

in area

pro"i#e# sorce

of cstomers

Sorce of ? @ entertainment'

recreation

$rotection @

against eather


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Location C.D Strip Shopping #ree


Secrity @

Long/ niform @ @ @hors ofoperation

$lanne# @ shopping

area'-alance#

tenant mi

$ar*ing @ @

(ccpancy ? @ @costs

0e,g, rent4


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Location City Strip Shopping #ree


$e#estrian @ @ traffic

Lan#lor# @ @ @control

Strong @ @ @competition

Ta ? ? ? ?incenti"es


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(ther Retail Location (pportnities

Mie# +se %e"elopments

AirportsResortsBospitalsStore ithin a Store


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PPT 7-19

Matching Location to Retail Strategy

. %epartment StoresRegional Mall

. Specialty ApparelCentral =siness %istrict/

Regional Malls. Category Specialists$oer Centers/

&ree Stan#ing

. rocery StoresStrip Shopping Centers

. %rg StoresStan# Alone


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PPT 7-20

Types of Leases

$ercentage

&ie# Rate

$ercentage leases lease based ona % of sales,

Retailers also typically pay a maintenance fee

-ase# on a percentage of their sDare footage oflease# space,

Most malls se some form of percentage lease,


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PPT 7-21

ariations of $ercentage Leases

$ercentage lease ith specifie# maimmpercentage of sales p to a maimm amont,

Rear#s retailer performance -y alloing retailer

to hol# rent constant a-o"e a certain le"el of sales

$ercentage lease ith specifie# minimmretailer mst pay a minimm rent no matter ho

lo sales are,

Sli#ing scale percentage of sales as rent#ecreases as sales go p,


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PPT 7-22

&ie# Rate Leases

#i4ed Rate Leases used by community andneighborhood centers5

6Retailer pays a fi4ed amount per month oer the life

of the lease5

6ot as popular as percentage leases

,raduated Lease a ariation of the fi4ed ratelease

6Rent increases by a fi4ed amount oer a specified

period of time5


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PPT 7-23

$ercentage or &ie# Rate Leases

Maintenanceincreaserecopmentlease se# ith either a percentage or

fie# rate lease,

Rent increases if insrance/ property

taes/ or tility -ills increase -eyon# acertain point,

6et lease retailer is responsi-le for all

maintenance an# tilities,


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PPT 7-24

$rohi-ite# +se Clase

Limits the lan#lor# from leasing to certain tenants,

Some tenants ta*e p par*ing spaces an# #onFt

-ring in shoppersG bowling alley, skating rink,meeting hall, dentist, or real estate office,

Some tenants col# harm the shopping centerFs

holesome imageG bars, pool halls, game parlors,off-track betting establishments, massage parlors

and pornography retailers.


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PPT 7-25

Eclsi"e +se Clase

$rohi-its the lan#lor# from leasing to retailersselling competing merchan#ise

Specify no outparcels

Specify if certain retailer leaes center% they can

terminate lease,

Escape Clase

0llo(s the retailer to terminate its lease if sales don+treach a certain leel after a specified number of

years% or if a specific co6tenant in the center

terminates its lease5


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PPT 7-26

En"ironmentalIsses

HA-o"egron# ris*s such as asbestos6containingmaterials or lead pipes used in construction,

Baar#os materials e5g5 dry cleaning chemicals%motor oil% that hae been stored in the ground,

RetailersF $rotection

Stipulate in the lease that the lessor is responsible

for remoal and disposal of this material if it+sfound5

Retailer can buy insurance that specifically

protects it from these ris"s5


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PPT 7 27

(ther Legal Isses

oning and .uilding Codesoning determines ho( a particular site can be

used5

.uilding codes determine the type of building%

signs% si:e% type of par"ing lot% etc5 that can beused

Signs

Restrictions on the use of signs can also impact

a particular site+s desirability

Licensing Re3uirements

Some areas may restrict or re3uire a license for

alcoholic beerages

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