What do you understand by the term Locational Decisions in Retailing? If you were hired by an established multi brand men’s garment retailer to identify suitable locations for their new outlets in tier II cities across Pan India, how would you go about in choosing a store locator and the criteria for evaluating the location aspects for the same. Illustrate.
The importance of the location decision is due to the following factors. Location is a major cost factor because it
- Involves large capital investment
- Affects transportation costs
- Affects human resources cost, e.g., salaries etc
Location is a major revenue factor in retail business because it
- Affects the amount of customer traffic
- Affects the volume of business
The terms ‘location’ and ‘site’ are often used interchangeably but there is a distinct difference between the two. ‘Location’ is a broader concept, which denotes the store and its trading area from where a majority of its customers originate, while a site refers to the specific building or part of the building where a store is located. Location and site characteristics should interact in a positive and synergistic way with a store’s merchandising, operations and customer service characteristics. For example, a designer men’s store located in an up market shopping centre or a mall near posh residential colonies, housed in an attractive building with adequate parking facilities.
Levels of Location Decisions and its Determining Factors; A retailer has to take the location decision, basing on three aspects:
- Selection of a city
- Selection of an area or type of location within a city
- Identification of a specific site
Some major factors-
 Foot Traffic-
For most retail businesses, foot traffic is extremely important. You don't want to be tucked away in a corner where shoppers are likely to bypass you, and even the best retail areas have dead spots. By contrast, if your business requires confidentiality, you may not want to be located in a high-traffic area. Monitor the traffic outside a potential location at different times of the day and on different days of the week to make sure the volume of pedestrian traffic meets your needs.
 Accessibility And Parking-
Consider how accessible the facility will be for everyone who must use it-customers, employees and suppliers. If you're on a busy street, how easy is it for cars to get in and out of your parking lot? Is the facility accessible to people with disabilities? What sort of deliveries are you likely to receive, and will your suppliers be able to easily and efficiently get materials to you? Small package couriers need to get in and out quickly; trucking companies need adequate roads and loading docks if you're going to be receiving freight on pallets.
 Competition-
Are competing companies located near your business? Sometimes competition can be good, such as in industries where comparison shopping is popular. (That's why competing retail businesses, such as fast-food restaurants, antique shops and clothing stores tend to cluster together.) You may also catch the overflow from existing businesses, particularly if your company is located in a restaurant and entertainment area. But if a nearby competitor is only going to make your marketing job tougher, look elsewhere.
 Proximity-
To Other Businesses Take a look at what other businesses and services are in the vicinity from two key perspectives. First, consider whether you can benefit from nearby businesses, either by the customer traffic they generate, or because those companies and their employees could become your customers, or because it may be convenient and efficient for you to be their customer.
 Utilities And Other Costs-
Rent is certainly the major portion of your ongoing facilities expense, but it's not all. Consider extras such as utilities-they're included in some leases, but not in others. If they're not included, ask the utility company for a summary of the previous year's usage and billing for the site. Also, find out what kind of security deposits the various utility providers require so you can develop an accurate move-in budget; however, you may not need a deposit if you have an established payment record with the company. If you have to provide your own janitorial service, what will it cost? What are insurance rates for the area? Do you have to pay extra for parking? Make sure you consider all your location-related expenses, and factor them into your decision.
Legal and Regulatory Environment You also need to understand legal and regulatory facts that impact your industry. Some industries are heavily regulated, while others have minimal government regulations. Loose regulations make it easier to open up shop. However, you may need to get professional or business licenses in some cases. To sell insurance, for instance, you need various licenses. If you want to open a pet shop, you need to understand federal and local laws on proper care and sale of animals.
Look at the facility with an eye to the future. It's generally unwise to begin with more space than you need, but if you anticipate growth, be sure the facility you choose can accommodate you.
Strategy for location decision multi brand men’s garment retailer
A Garment store may be the perfect business for you, especially if you like purchasing garments. Start by observing what types of garments your competitors sell. Notice the styles and prices of the garments. Plan to differentiate your men’s garment store from competitors. Offer similar garments but a wider selection, for example. You can also sell men and women's discount garments if competitors are not tapping that market.
Step 1- Take a job as a men's garment salesperson. Work the job part-time to to learn more about the women's garment business, especially if you have no experience.
Step 2- Decide
_______ _______ ____ __________ ______ _____ __________ _________ _________ ____ ________ __________.
_____ __________ ______ ____ __________ ____ __________ ________ __________.
_____ _____ _____ _____ ___.
______ _____ _____ __________ _____ __________ _______ ___ ______ ___ _________.
____ _________ _____ _______ ____ ____ ________ _________ ____ __________.
___ _________ _____ ______ ________.
________ ____ _______ ____ ______ ____ __________ _______.
_____ _____ ____ ___ _______ __________ __________ _______ ________.
____ __________ _________ _______ _____.
____ _________ _________ ___ ____ ____ ____ _____ ____ ________ _________ ______.
_______ ________ ___ _____ __________.
_____ ________ _______ ________ ________.
_____ _______ ________ __________ _____ ______ ___.
_______ _________ _____ _____ ______ ______ ____.
________ _________ ______ ______ _____ __________.
__________ __________ ___ ____ ______ _________ __________ ______ ____.
_________ _____ _____ _____ _______ ________ ______ _____ _____.
_____ __________ _____ _____ ___.
_________ _________ _____ ______ ___ _______ ________ _______ _________ ____ ____ ____.
______ ______ _____ _________ _____ ____ ___.
____ _________ ______ __________ _______ ____ ______ _______ ___ ______ _________.
_____ __________ ______ _______ _____ _______ ___ ________ __________.
_______ _______ ______ ____ _____ ____.
____ ____ ____ ______ ________ ________ __________ ____ ________.
___ _____ _________ ____ ______ ______ ___ ________ _________ _________ _____.
_______ __________ _______ __________ ___ ___ _____ _________ _________ __________ ______.
__________ _____ _________ ____ _______ _________ _____ ______.
_________ ______ _______ ___ _____ __________ ______ ________ _____ ________ ___ _______.
_____ ___ ___ ___ _______ ___ _____ _________ _________ _______ _____.
____ _____ _____ ___ ______ __________ ______ ____ _______ ________.
______ _________ ______ _________ _______ ______ _______ __________ ________ ____.
______ ___ _____ ________ ______ _________ ______ ________ ___ _________ ___.
____ ______ ____ ____ ______.
______ ___ ____ _____ ________.
__________ ________ _______ __________ ________ ________ _________.
_________ ___ __________ ___ ________ ____ __________ _______.
__________ _________ ___ ______ ___ ________ ___ _______ ______ ___ ____ ___.
____ ___ ____ __________ __________ ________.
__________ __________ _______ ________ _______ ____ _______ __________ ___.
_______ ____ _______ _____ ________ _______ ____ ________.
__________ _________ ______ _______ _____ ___ _______ _____ ______ _______.
________ _______ ___ ___ _________ _______ ________.
___ _____ ________ ___ ______ ___ ____ _____.
_______ __________ ___ ____ ______ ___ ________ ____ __________.
____ ________ ___ ______ _____ __________ ______ ____ _________ __________.
__________ ____ __________ ____ ___ ______ ________ _____ _____ ______.
__________ _______ _________ _____ _________ _________.
______ __________ _________ _______ ______ ____ _______ ________ ______ _____ _____ _____.
__________ __________ _________ ________ ___ ________ ____ ______ ___ __________ _____.
___ ____ _________ _________ __________ _____ _________ _______ ____ _____ ________ ________.
___ ________ ____ ____ __________ __________ ________ _______ ____.
___ __________ __________ _______ __________ ___ ___ ________ ___ ________ ___ _________.
_____ __________ ____ ___ ________ ___ __________ ___ ________ ________.
______ ________ ____ __________ ______.
________ ____ ____ ______ ______ _________ _____ ___ _______ _____ _______.
_____ _____ _______ __________ ______ ____ _______ _______ _________ ___.
___ __________ _________ ___ ________.
_________ _____ __________ ___ _____ ____ ______ _______ _____.
________ __________ ______ ______ _______ _________ ___ __________ _____ ________.
____ ___ __________ ________ _______ ___ _________ ______ ___.
___ ___ _________ _____ ______ _________ ________ _______ _________ __________ ______.
_____ __________ _____ _____ ____ __________ _____ ________ _____ ___ __________ ________.
___ ____ ___ ___ ________ ___ _______ ___ ______ ________.
__________ _____ ______ ______ ____ ___ __________ ____ _________.
________ ______ _________ _______ ________ ______ _________.
____ ______ __________ ______ _________ _________ ____ ________ ____.
_______ ______ __________ __________ ___ ________ ___ ___.
____ _____ __________ _________ _____ __________.
_________ _________ ______ ____ ____ _______ _________.
______ ________ _____ ___ _______ ___ __________ ____ _________.
____ _____ ________ _______ ______.
____ _______ ____ _________ _________ ___ ____ _______.
___ ________ _______ ____ ______ ____.
_______ _________ ________ _______ ______ ______ _________ __________.
________ ____ ____ ____ _________ ________ ___ _________.
___ ___ ____ __________ ________ _______ ________.
____ _________ _________ ______ ___ ___ ______ ____ ___ __________.
____ _______ ____ ________ _______ _____ _____.
____ __________ ____ ____ __________ _______ ___ _______ __________.
_____ _______ _______ ________ ___ __________ ________.
_________ ________ _______ __________ _______ _________ _____ _________ _____ _______ ____.
________ _________ ____ _______ __________ ___ __________ _________.
________ ______ _____ ______ ____ ________ ________ ________.
______ ___ _________ _________ _____ ___ ___ ____.
_____ __________ ___ ______ _____ _________ _____ _______ ___ _______ _____ ____.
________ ________ _____ ____ _________ ________ ________ ________ _______ ______ _______.
____ __________ ____ ___ ________ _____ _________ ______ ________.
________ __________ __________ ____ ____ ______ ________ _______ __________ _______ ____ ______.
__________ _______ _______ ________ ________ _______ ________ ____ ________.
_____ ________ ______ ___ ___ ______.
______ _____ ________ ____ _________ ______.
___ _____ ____ ________ __________ ___ ___.
______ _____ __________ ___ ________.
_______ _______ ____ _____ _______ ________ ___.
_____ __________ _______ _____ _________.
____ __________ _________ __________ _______ __________ ____ ___ __________ _______ _____ ___.
____ ___ _______ _______ ________ ______ ___.
______ ______ _____ ________ __________.
_________ _____ ________ __________ ______ ____ ________.
______ _______ ____ ___ ______ _________ _________.
____ _____ ____ ______ ________ ________ ___ __________ ___ ____ _________.
_____ ____ ___ ________ ________ _________ ______ ________ _______.
__________ ______ _______ _______ ______ __________ ___ _________ ________ ____ ___.
______ ____ _____ _____ ______ _______ ___.
________ ________ _____ _____ _______ ________ ______ _________ ____ __________ ____ __________.
__________ _________ ____ _______ _____ __________ ________ ___ ________.
_______ __________ _____ __________ ____ _____ _______ ________ ___ _________ ______ _____.
_______ ____ _______ ___ ________ ____ __________ ________ _________ _________ ___ ___.
________ _________ __________ ______ ______ _____ _____ _____ _____ _____ ____.
_____ _______ _______ _________ ________ ________ __________ _________ _____ ______ _______ _______.
_______ _____ _________ ___ ____ ________ ______ _________.
_________ ______ _________ ______ ________ ________ ___ __________ _________.
_______ _____ _______ ________ ___ ____ _____ ______ ________.
____ _____ _________ ____ _______ __________.
__________ __________ _________ _______ _______ _______ _______ _______ ________ __________.
________ _____ _______ ________ ______ ________ ______.
____ ________ __________ ____ __________ __________ ___ _____ ___.
___ ____ ______ ___ ________ _____ _____ _______ _________ ______.
__________ __________ ______ ___ ________ _______ ____ ________ _________ _____.
_____ ________ ________ ______ ______ __________ ____ ____ ______ _____ _________ ________.
__________ _________ __________ ___ __________ ________ ______ ________ ________.
_____ _____ _________ _____ ____ ________ ______ _________ ____ ___ ________ __________.
____ _______ __________ _____ __________.
_________ _______ ____ ______ ________.
___ _____ ________ __________ ______.
_______ _____ _________ ________ __________ _________ _______ ______.
__________ _____ ____ __________ _______ _________ ______ _________ _____ ____ ________.
____ ___ _____ ______ ________.
____ ____ __________ ______ ______ _________ _________ ________ ____ ____.
_________ __________ _____ _____ _________.
_____ ________ ____ ___ ___.
________ ______ ____ _____ _______ ____ ___ _______ _______.
________ _______ _____ ___ _______ _______ _____ _____.
___ _____ _______ ______ __________ ________ _____ _______ ______ ______.
____ __________ _________ _____ ________ _____ ____ ______ _____ ____ ______.
___ __________ ______ ________ ________ __________ _______ ________.
___ ___ ___ ___ _________.
________ __________ __________ __________ ________.
____ ______ ___ __________ _________ _________ ______.
____ _______ ______ _____ _________ __________ _____ __________.
____ ____ ___ ___ ________ ______ _________ _______ __________.
________ ___ _____ ______ ______ ___ _________ ______.
__________ ____ ______ _____ ___ ___ ______ __________ _____ _________ ____ ______.
_______ ___ ______ ____ ___ _______ _______ _____ _______ __________.
__________ ________ _________ _________ ____.
________ ______ ___ _________ ______ _______ __________ _______ _________.
_________ ______ _____ _________ _______ _______ ______ ____ ________.
__________ _____ _________ _______ ____ ___ _____ __________ ____.
_______ _________ ________ _________ _________.
______ ________ ____ ________ _______ ___ _________ _____ _______ ____ __________.
_________ __________ ____ _________ ________ ____.
_________ _______ __________ ____ __________ _______ ______ ___ __________ ________ ________.
_________ __________ _________ ______ _______.
___ ___ __________ ____ ______.
_______ ___ ________ ________ _______ _________ _______ ____ _________ __________.
____ ____ __________ ___ ____ __________ __________ ______ _______ ___.
_____ ___ ____ ____ ________ ___ ___ ______ __________ _______ _________.
__________ ______ ________ ____ ________ ____.
____ ____ ___ ______ ___ ___ _________ _____ ____.
____ _____ _________ ________ _____.
________ _____ _____ _______ __________ ______ _________ ____ _____ __________ ___ ___.
_____ ______ ________ __________ _____ ______.
____ _____ _____ ___ __________ ______ _____.
_____ _______ ________ ___ ______ _______ _______ ______ _____.
______ ______ __________ ___ _______ _________ __________ _____ ___.
_____ ___ __________ _____ _______ ________.
________ ______ _________ _____ _______ ________.
____ _____ ___ ________ _____ __________.
______ __________ ______ __________ ______ _________.
____ __________ ___ ____ ________.
_____ ________ ________ ___ ____ _________.
________ ____ ______ ______ ___ ______ _______ ___ ________ ________.
__________ ____ ________ ____ _____ _______ ________ _____ ____ ______ ___.
_____ _________ _______ ____ __________.
____ _______ __________ ____ _________ ____ __________.
__________ _____ _______ _______ ___ __________ _________.
________ _____ ________ __________ ______ _______ ________ __________ ____ ______ _____ ______.
_________ ___ ____ ______ __________ _______.
____ ___ _________ ________ ______ ________ ____ ________ _________ _____ _______.
________ _____ _______ _____ __________ __________ ___ ____.
__________ _______ _________ _____ ____ ______ ____ ______ _______ ______ ____.
______ _________ _____ ___ __________ ___ ______ _________ __________ _________.
_____ _______ __________ ____ _________ __________ ___ ___ ___ ____ _______ _______.
______ ________ ___ ______ ____ _____ _________ _________ ________ _____ _____.
______ ________ _________ __________ ____ ___ ____ _________ _______.
_______ ________ _____ _____ ______ ________ _____ _________ __________ ____ ________.
_______ __________ ___ _______ ______ ______ _______ ___ _____ ___.
_____ __________ ______ ___ ___ ______ ________ ____ ____.
____ ________ ______ _____ ___ _______ _________ _______ _________ ____.
_________ __________.
- Solved Assignments
- Study Notes
- Guess Papers
- Question Papers
✓ Unlock up to 60% of the answer
✓ No payment required