retail management 4 storeandlocation

7/29/2019 Retail Management 4 StoreAndLocation

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Retail Store & Location


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Unit 4Retail Store & Location

Types of Retail Location, Step involved in choosing aRetail Location.

Merchandising, Basis of retail merchandising,Factors affecting the Merchandising functions,

The Merchandises Role & Responsibilities. VisualMerchandising


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Introduction

Define Store:

A store is place , real or virtual , where the shopperscomes to buy goods & services. The sales transactionoccurs at this junction.

The location of retail store has for along time been consideredthe most important P in retailing.

Locating the retail store in the right place was considered to beadequate for success.


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Location becomes a critical decision for a retailer for severalreasons. As like;

Location is generally one of the most important factorscustomers consider while choosing a store.

A bad location may cause a retailer to fail even if its strategic mixis excellent.. On the other hand , a good location may help aretailer succeed even if its strategic mix is mediocre.

Store location is least flexible element of retailers strategic mixdue to its fixed nature, the amount of investment, and the lengthof lease agreements


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Various option are available to the retailer for choosing thelocation of store.

The choice of the location of the store depends on the target

audience and the kind of merchandise to be sold.

A retailer has to choosing among alternate types of retaillocations available . It may locate in an isolated place and pull the

customer to the store on its own strength, such as a smallgrocery store or paan shop in a colony which attracts thecustomers staying close by

Types of Retail Location


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Typically a store location may be:

1. Freestanding /Isolated store.

2. Part of Business District/Centers (unplannedBusiness Districts).

3. Part of a Shopping Center (Planned ShoppingCenters)


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1. Freestanding /Isolated store

Where there are no other outlets in the vicinity of the store andtherefore store depends on its own pulling power and promotionto attracts customers.

A biggest advantages for freestanding stores is that there is no

competition around.

This type of location has several advantages including nocompetition, low rent, often better visibility from the road, easy

parking and lower property .

Neighborhood Stores; colony shops serves small locality. Highway Stores :Ebony store in Ludhiana .


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Business Associated Location:These are location where agroup of retail outlets offering a variety of merchandise worktogether to attract customers to their retail area, but alsocompete against each other for the same customers.two types

includes in ;




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A retail store can also be located as a part of a business district. Orwe can refer this as unplanned business centers

A business district is place of commerce in a city which developedhistorically as the center of trade and commerce in the city or town.

A business districts can be a central, secondary or a Neighborhood

business district.

A Central business District CBD is the main center of commerceand trade in the city. (high land rates , intense development)


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A CBD is the hub of retailing activity in a city.

CBD served different sections of population for Examples ofCannaught place in Delhi, Colaba in Mumbai, Commercial Streetand in Bangalore are up market CBDs.

CBDs serving the upper and upper middle class customers

across these cities like, chandani chowk in Delhi, Kalbadevi-Bhuleswar in Mumbai, Chickpet in Bangalore.

Secondary Business District are composed of unplanned clusterof store often located on a major intersection of city they acustomers from a large part of the city


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A shopping center has been defined as a group of retail andother commercial establishments that is planned , developed,owned and managed as a single property

The basic configuration of a shopping centre is a Mall or Stripcentre.

A mall is typically enclosed and climate controlled. A walkway is

provided in front of the stores.

A strip centre is a row of stores with parking provided in thefront of the stores.


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In India we can planned shopping centre can categorize in twocategory

Regional shopping centers or Mall: Regional shopping centersor mall are the largest planned shopping centers..

Often they are anchored by two or more major departmentstores have enclosed mall serve a large trading area and have highrents. (ansal plaza,spencers plaza crossroads, DLF city inGurgaon)

Neighborhood/community/shopping centers:Neighborhood /community centers usually have a balanced mixof stores including a few grocery stores , a chemist, a verity storeand a few other stores selling convenience goods to the residentsof the neighborhood.


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Step involved in choosing a Retail Location

In order to arrive at the decision on where to locate the retail

store a retailer needs to first on the region that he wants tolocate the store.

After identifying the region the following steps Have to befollowed .

1. Identifying the market in which to locate the store.

2. Evaluate the demand and supply within that market. i.e.determine the market potential.

3. Identify the most attractive sites

4. Select the best site available


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1. Market Identification:

The first step in arriving at a decision on retail location is toidentify the market attractiveness to a retailer.

This is important that retail needs to understand the marketwell.

2. Determining the market Potential::

The retailer need to take into consideration various elementsas shown in format. (features of population)

Demographic features of the population

The characteristics of the household in the area (average

household income) Competition and compatibility (Need to know compatibility &

competition in market)

Laws & regulations:( good understanding of the laws


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Determining the market Potential

Demographics ofpopulation & area

Competition

Laws & RegulationTrade areaanalysis


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Trade area analysis:

A trade area is the geographic area that generates the majority of

the customers for the store.

Primary trade area: primary trading covers between 50-80% ofthe stores customers.

Secondary Trading Area: this area contains the additional 15-to 25% of the stores customers.

Tertiary trading area covers the balance customers

These trading areas are dependent on distance and do not alwayshave to be concentric in nature


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Types of Trades areas.


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3 & 4Identify Alternate sites and select the site:

After taking decision on the location and market potential the

retailer has to select the site to locate the store based on these Traffic

Accessibility of the market is also a key factor

The total number of stores and the type of store that exist in the

area Amenities

To buy or to lease

The product mix to be offered by the retailer


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Product and merchandising management is key activity in themanagement of retail business.

The primary function of the retailing Is to sell Merchandise.

One of the most strategic aspects of the retail business is todecide the merchandise mix and quantity to be purchased .

Merchandising can be termed as the planning, buying and theselling of merchandising .

Merchandising,

Basis of retail merchandising,


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Define Merchandising as The analysis, planning, acquisition,

handling and control of merchandise investments of a retailoperation.

Merchandising is the core of retailing.

The function of merchandising is an integral part of retailingand also one of the most challenging functions.

AMA define The planning involved in marketing the rightmerchandise at the right place at the right time in the rightquantities at the right price.


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Achieving these five Right is the key to successful

merchandising and many a times, this remains an elusive goal formost retailers.

Merchandising management can be termed as Planning,

analysis, acquisition, handling and control of themerchandise


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Analysis: because retailers must be able to correctly identify theircustomers before they can ascertain consumer desires and theirneeds/requirements for making a good buying decision.

Planningis important because merchandise to be sold in thefuture must be bought now.

Acquisitionsbecause the merchandise needs to be procured fromothers, either distributors or manufactures.

Handlinginvolves seeing that the merchandise is where it isneeded and in the proper condition to be sold.

Controlis required since the function of merchandise involvesspending money for acquiring products it is necessary to controlthe amount of money spent on buying


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Factors Affecting the Merchandising Function

Merchandising does not function in isolation.

It is affected by various factors like the organization structure,the size of the retail organization and the merchandise to becarried.

Rarely are any two stores organized in the same way.

The function of the merchandising is vary from one organization

to another.

Size: The needs of the individual retailers vary from those oflarge chain store operation.


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Size of organisationMerchandisetobecarried

OrganisationStr

ucture

Typesofstore

Merchandising function


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The merchandiser to be carried by a retailer largely determinesthe responsibilities of the merchandiser.

Merchandise to be carried:The buying for basic merchandise is fairlydifferent from buying fashion merchandise.

A merchandisers who I handling fashion products will need to

spend more time in the market, and looking for the productswhich is more suitable for the customers.

Organization structure thatthe retail organization adopts also affects

the merchandising function. Some organization maydifferentiate the role of the buyer and the role of amerchandisers separately.


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The Merchandises Role & Responsibilities

Planning:Thought the merchandising may not be directlyinvolved in the actual purchase of merchandise.

They formulate the policies for the areas in which they areresponsible.

Forecasting sale for the forth coming budget period and canestimate the consumer demand and the impact of changes in theretail environment.

Directing: Guiding and training buyers as and when the needarises, is also a function of the merchandiser.

The buyers have to be guided to take additional markdowns forproducts which may not be doing too well in the stores.


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Co-ordinating: Merchandise managers supervise the work ofmore than one buyer.

They need to coordinate the buying effort in terms of how wellit fits in with the store image and with the other products beingbought by other buyers.

Controlling: assessing the buyers performance , is a also part ofthe merchandise managers Job.

This includes evaluated on the basis of net sale, maintain markup percentage, gross margin % and stock turn


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Role of the Buyer

Buyers plays an important role in the retail industry. they selectand order merchandise to be sold.

Buyers may be responsible for buying for a department, anentire store, or a chain of stores

1. Developing the merchandising strategies for the product line

2. Planning and selecting merchandise assortments

3. Vendor Selection4. Pricing of the merchandise

5. Inventory Management


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Retail Store Design & Visual Merchandising

Store design and layout tells a customer what the store is all aboutand it is very strong tool in the hands of the retailer forcommunicating and creating the image of the store in the mind ofthe customers.

The design and layout of the store are a means of communicatingthe image of the retail store.

The environment which is creates in the retail store, is acombination of the exterior look of the store, the store interiors,the atmosphere in the store and the events, promotions and thethemes.


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The overall look of a store and the series of mental pictures andfeelings it evokes within the beholder.

For the retailer, developing a powerful image provides theopportunity to embody a single message, stand out from thecompetition and be remembered.


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Elements of store design

Store

design

Building

architecture

Frontage &Entrance

Ext.

Display

space

Target

Customers

Health&

Safety

Location

Store

theme

Merchand

ise Mix

Parking

Access


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Exterior Store Design & Interior Design

Exterior

Location Parking

Ease of access

The building architecture

Health and safety standards Store windows, lighting

Interior Fixtures

Flooring & Ceilings Lighting

Graphics & Signages

Atmospherics


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Visual merchandising

Can be termed as the orderly, systematic, logical and

intelligent way of putting stock on the floor

VM is the art of presentation, which puts the merchandise infocus. It educates the customers, creates desire and finallyaugments the selling process.


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METHODS OF DISPLAYS

Color Dominance

Co-ordinated Presentation Presentation by price

retail management 4 storeandlocation

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