CRITERIA FOR SITE SELECTION FOR A RETAIL FORMAT

2. IMPORTANCE OF LOCATION
DECISION
Location is a major cost factor because it
Involves large capital investment
Affects transportation costs
Affects human resources cost e.g. Salaries

3. IMPORTANCE OF LOCATION
DECISION
Location is a major revenue factor because it
Affects the amount of customer traffic
Affects the volume of business

4. IMPORTANCE OF LOCATION
DECISION
1st LOCATION
2nd LOCATION
3rd LOCATION

5. LEVELS OF LOCATION DECISION
& ITS DETERMINING FACTORS
SELECTION OF A CITY
SELECTION OF AN AREA WITHIN CITY
IDENTIFICATION OF A SPECIFIC SITE

6. LEVELS OF LOCATION
DECISION & ITS
DETERMINING
FACTORS
SELECTION OF A CITY

7. SELECTION OF A CITY
POPULATION & GROWTH TRENDS
CURRENT POPULATION
POPULATION DYNAMICS –
Apartments V/S Homes,
Population Density
Likelihood of Growth, Decline, Constant
THEIR INCOME LEVEL
SEASONAL CHANGES / PERIODICAL INCOMES
AGE GROUPS & SEXUAL COMPOSITION

8. SELECTION OF A CITY
SIZE OF THE CITY’S TRADING AREA
PRIMARY , SECONDARY, TERTIARY
PURCHASING POWER & ITS DISTRIBUTION
DISPOSIBLE INCOME
TRADE POTENTIAL
NUMBER,SIZE,QUALITY OF COMPETITION

9. LEVELS OF LOCATION
DECISION & ITS
DETERMINING
FACTORS
SELECTION OF AN
AREA WITHIN CITY

10. AREA WITHIN CITY
CUSTOMER ATTRACTION OF SHOPPING DISTRICT
QUANTITATIVE & QUALITATIVE COMPETITION
TRAFFIC AND TRAFFIC PATTERNS
NATURE OF ZONING REGULATION
DIRECTION OF THE AREA EXPANSION
VISIBILITY OF THE STORE

11. LEVELS OF LOCATION
DECISION & ITS
DETERMINING
FACTORS
IDENTIFICATION OF
A SPECIFIC SITE

12. SITE DECISION
ADEQUACY AND POTENTIAL TRAFFIC
COMPLEMENTARY NATURE OF ADJACENT STORE
ADEQUACY OF PARKING
TENANCY MIX – IF MALL / SHOPPING CENTRE
OWNERSHIP OR LEASE

13. OWNERSHIP V/S LEASE
OWNERSHIP
ADVANTAGES
# Increase in real estate value can
be solely enjoyed by the Owner
# Physical Changes in the property
can be done
# Liberty to rent a store
# No Interference of Landlord
DISADVANTAGES
# Huge Initial Investment
# Heavy Interest
# Maintenance costs
# Decrease in real estate value has
to be borne by the Owner

14. OWNERSHIP V/S LEASE
LEASE
ADVANTAGES
# No Initial Investment except Deposit
(if any)
# No Initial Interest
# Opportunity to move elsewhere at
the expiration of the lease
# Ability to concentrate on
merchandising instead of on real
estate

15. LOCATION OF A WAREHOUSE
(HUB)
WAREHOUSE
HUB
RETAIL STORE
RETAIL STORE
RETAIL STORE
RETAIL STORE
RETAIL STORE
RETAIL STORE
RETAIL STORE

16. TYPES OF LOCATION
FREE STANDING LOCATIONS
UNPLANNED CBD’s
PLANNED SHOPPING CENTRES

17. TYPES OF LOCATION
FREE STANDING LOCATIONS
NEIGHBOURHOOD STORES HIGHWAY STORES

18. TYPES OF LOCATION
UNPLANNED CBD’s
NEIGHBOURHOOD- BUSINESS - DISTRICT
DOWNTOWN OR CENTRAL BUSINESS DISTRICT
SUBURBAN BUSINESS DISTRICT
SECONDARY BUSINESS DISTRICT

19. TYPES OF LOCATION
PLANNED SHOPPING CENTRES
REGIONAL SHOPPING CENTRES OF MALLS
NEIGHBOURHOOD / COMMUNITY
SPECIALITY MARKET
PERIODIC MARKETS / WEEKLY

20. TYPES OF LOCATION
BROADER CLASSIFICATION RELEVANT IN
DESIGNED (MAIN)
INDIA

21. TYPES OF LOCATION
BROADER CLASSIFICATION RELEVANT IN
INDIA
DESIGNED (MAIN)

22. TYPES OF LOCATION
BROADER CLASSIFICATION RELEVANT IN
EMERGED (MAIN)
INDIA

23. TYPES OF LOCATION
BROADER CLASSIFICATION RELEVANT IN
INDIA
NOT MAIN – EITHER EMERGED OR DESIGNED

24. TYPES OF LOCATION
BROADER CLASSIFICATION RELEVANT IN
INDIA
DESIGNED BY
BIULDER/ DEVELOPER
As Townships
But not Malls

25. TYPES OF LOCATION
BROADER CLASSIFICATION RELEVANT IN
SHOPPING MALLS
INDIA

26. TYPES OF LOCATION
BROADER CLASSIFICATION RELEVANT IN
INDIA
EMERGED FROM PICULAR NEED

27. TYPES OF LOCATION
BROADER CLASSIFICATION RELEVANT IN
INDIA
AREA WHICH CAN
BE CONVERTED

28. TYPES OF LOCATION
BROADER CLASSIFICATION RELEVANT IN
LOW RENT DISTRICT
INDIA

29. TYPES OF LOCATION
BROADER CLASSIFICATION RELEVANT IN
DESIGNED (MAIN)
EMERGED (MAIN)
NOT MAIN – EITHER EMERGED OR DESIGNED
DESIGNED BY BIULDER/ DEVELOPER
SHOPPING MALLS
EMERGED FROM PICULAR NEED
AREA WHICH CAN BE CONVERTED
LOW RENT DISTRICT
INDIA

30. THE SPREAD OF ORGANISED
RETAIL IN INDIA
BANGALORE CHENNAI
MUMBAI DELHI KOLKATTA
PUNE GURGOAN NOIDA INDORE CHANDIGARH
NAGPUR BHOPAL JAIPUR UDAIPUR
NASIK AHEMDABAD COCHIN MADURAI

31. HOW FAR IS THE CUSTOMER WILLING TO
TRAVEL
Jewellery 1.5 km
Apparel 2.32 km
Music 2.54 km
Books 2.74 km
Grocery 4.0 km
Cosmetics 4.5 km
1
2
3
5
4
KSA Technopak Consumer Outlook 2002

32. • Reilly’s retail gravitational theory
(Ba / Bb) = (Pa / Pb) ((Db / Da)
Ba = the business which City A draws from the intermediate place
Bb = the business which City B draws from the intermediate place
Pa = Population of City A
Pb = Population of City B
Da = Distance of city A to the intermediate place
Db = Distance of city B to the intermediate place
2