Retail Service Mix 2
Retail Service Mix 2 – Location Management
In this report i will discuss the stages of location and what may prevent them from happening.
I will also include the methods of catchment, site selection analysis and comparison. I will also discuss the importance of store location and the recent changes in Marks and Spencers.
1. McGoldrick believes that there are 3 stages in discovering the perfect location for a new store, Search, Viability and Micro.
Search is identifying a location where there could be potential, if a store was to be opened. This could be by investigating the competition and asking the neighbourhood what they feel their community is missing.
Viability locates the best available area, and then calculates the possible turnover, by using secondary data research. They may asses this by, evaluating how easy it is to access for both customers and suppliers
Micro, examines all the possible sites, so that it fits the needs of the business, it also estimates the potential that a business may have at that location.
Before purchasing any properties the company must be aware, that planning permission is necessary by the local council, if they were to consider expanding.
This is because they must decide whether they believe the community will benefit from the new business.
It is usually easier to open large stores in big city centres, as the councils are trying to bring people back into the city. This is because many years ago the people who lived in the inner city began moving away to the rural areas. As a result of this the inner city stores began to close and the towns where renown for not being a “nice” place. Therefore the council are wanting to open new appealing stores, which will hopefully bring more people back into the town. Not only to give the town good names but increase the revenue and lower the unemployment numbers. It is harder to obtain permission in smaller villages as; councils would prefer to keep the traditional shops
In this report i will discuss the stages of location and what may prevent them from happening.
I will also include the methods of catchment, site selection analysis and comparison. I will also discuss the importance of store location and the recent changes in Marks and Spencers.
1. McGoldrick believes that there are 3 stages in discovering the perfect location for a new store, Search, Viability and Micro.
Search is identifying a location where there could be potential, if a store was to be opened. This could be by investigating the competition and asking the neighbourhood what they feel their community is missing.
Viability locates the best available area, and then calculates the possible turnover, by using secondary data research. They may asses this by, evaluating how easy it is to access for both customers and suppliers
Micro, examines all the possible sites, so that it fits the needs of the business, it also estimates the potential that a business may have at that location.
Before purchasing any properties the company must be aware, that planning permission is necessary by the local council, if they were to consider expanding.
This is because they must decide whether they believe the community will benefit from the new business.
It is usually easier to open large stores in big city centres, as the councils are trying to bring people back into the city. This is because many years ago the people who lived in the inner city began moving away to the rural areas. As a result of this the inner city stores began to close and the towns where renown for not being a “nice” place. Therefore the council are wanting to open new appealing stores, which will hopefully bring more people back into the town. Not only to give the town good names but increase the revenue and lower the unemployment numbers. It is harder to obtain permission in smaller villages as; councils would prefer to keep the traditional shops
Bibliography: http://www.examstutor.com/business/resources/companyprofiles/marksandspencer/history.php www.marksandspencers.co.uk Kent. T & Ogenyi Omar (2003), Retailing. Palgrave MacMillan. New York McGoldrick. (1997) Retail Marketing (2nd edn), McGraw-Hill. Fernie et al (2003) Principles of Retailing – Butterworth Heinemann David Gilbert (2003) Retail Marketing Management