Retail Layouts
Date of submission: 20-09-2012
RETAIL LOCATION
Location is the most important ingredient for any business that relies on customers. It is also one of the most difficult to plan for completely. Location decisions can be complex, costs can be quite high, there is often little flexibility once a location has been chosen, and the attributes of location have a strong impact on a retailer’s overall strategy. In India, most retailers prefer to own the property rather than avail of the desired property through lease or rental. This makes the location decision even more critical. Choosing the wrong site can lead to poor results and, in some cases, insolvency and closure.
For several reasons, store location is often the most important decision made by a retailer. First, location is typically the prime consideration in a customer’s store choice. For instance, when choosing where you’re going to have your car washed, you usually pick the location closest to your home or work. Second, the location decisions have strategic importance because they can be used to develop a sustainable competitive advantage. However, location decisions are harder to change because retailers frequently have to either make substantial investments to buy and develop real estate or commit to long-term leases with developers. Many types of locations are available for retail stores-each with its own strengths and weaknesses. Choosing a particular location type involves evaluating a series of trade-offs. These trade-offs generally concern the cost of the location versus its value to customers.
Importance of Location Decision
The importance of the location decision is due to the following factors: 1) Location is a major cost factor because it a) Involves large capital investment b) Affects transportation costs c) Affects human resources cost, e.g., salaries
2) Location is the major revenue factor because it d) Affects the amount of customer traffic
RETAIL LOCATION
Location is the most important ingredient for any business that relies on customers. It is also one of the most difficult to plan for completely. Location decisions can be complex, costs can be quite high, there is often little flexibility once a location has been chosen, and the attributes of location have a strong impact on a retailer’s overall strategy. In India, most retailers prefer to own the property rather than avail of the desired property through lease or rental. This makes the location decision even more critical. Choosing the wrong site can lead to poor results and, in some cases, insolvency and closure.
For several reasons, store location is often the most important decision made by a retailer. First, location is typically the prime consideration in a customer’s store choice. For instance, when choosing where you’re going to have your car washed, you usually pick the location closest to your home or work. Second, the location decisions have strategic importance because they can be used to develop a sustainable competitive advantage. However, location decisions are harder to change because retailers frequently have to either make substantial investments to buy and develop real estate or commit to long-term leases with developers. Many types of locations are available for retail stores-each with its own strengths and weaknesses. Choosing a particular location type involves evaluating a series of trade-offs. These trade-offs generally concern the cost of the location versus its value to customers.
Importance of Location Decision
The importance of the location decision is due to the following factors: 1) Location is a major cost factor because it a) Involves large capital investment b) Affects transportation costs c) Affects human resources cost, e.g., salaries
2) Location is the major revenue factor because it d) Affects the amount of customer traffic