each other. Place for catalogs is in homes or
businesses where they will be read. Internet
retail sites must be easily entered and used by
computer shoppers. These are very important
determinants of retail success. They directly
relate to retail positioning for particular target
markets, establishing retail images, and
differentiating from competitors.
Site Location
A prime location is key to attracting enough
customers to make a good profi t. The market
area from which a store draws might encompass
several blocks to several hundred miles of its
site. Customers often choose a store because
it is situated near work or home, or with a group
of other stores that can complete all of their
purchases.
When considering site locations, large
retailers will fi rst evaluate a wide area, such as a
certain part of the country. For instance, national
chain retailers evaluate market growth and needs
for their stores in various regions of the country
before deciding to expand into those areas or
open more stores in the region.
Regional retailers must determine the
right state or town in which to locate. A certain
population base, with target market composition,
is needed to support different types and sizes of
stores. For some retailers, small, local markets
of their target market segment, which have less
competition, are better than heavily populated
areas that have more competition. On the other
hand, mass merchandise “mega stores” draw
from a larger area of heavy population. Even
if there are already similar stores in that area,
they may be able to take business away from the
competition and be very successful.
Once the right local market has been
chosen, a decision must be made about the
most suitable shopping center, mall, or street
location. Large retailers sometimes stand
alone, able to draw customers by themselves.
Other retailers depend on the pulling power of
a cluster of stores grouped together for more
convenient one-stop shopping, 13-19. A tenant
mix is the particular assortment of different
stores grouped together in a cluster, shopping
center, or mall. Most stores rent their spaces
from commercial real estate companies that
develop and own the sites.
The site should be visible to passing traffi c
and easy to approach, enter, and exit, 13-20. It
should be safe from crime and other consumer
problems. It should also be compatible with
customers’ shopping needs. For instance, offi ce
supply stores are usually not located near
residential neighborhoods, and garden centers
are usually not found in downtown business
districts. Retailers try to place their stores for the
convenience of their target markets.
13-19 If retailers that serve the same or
similar target markets locate together,
they have “pulling power” to attract more
customers.
13-20 The best retail sites are along major
roads that are heavily traveled with clear
entrance and exit routes.
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