Factors Affecting Demand for a Region or Trade Area
Economies of Scale Versus Cannibalization Demographic and Lifestyle Characteristics Business Climate Competition Span of Managerial Control
Location and Retail Strategy
The selection of a location type must reinforce the retailer’s strategy. Be consistent with the shopping behaviour and size of its target market. Be consistent with its positioning strategy.
Density of Target Market
A good location has many people in the target market that are drawn to it. Convenience – CBD (central business district) Comparison – Mall Specialty – will travel to get there
Types of Locations
Shopping Centre A group of retail and other commercial establishments that is planned, developed, owned and managed as a single property. Strip Centre A shopping centre that usually has parking directly in front of the stores and does not have enclosed walkways linking the stores.
Types of Shopping Areas
Mall A shopping centre with a pedestrian focus where customers park in outlying areas and walk to the stores. (Not typical to Canada)
Power Centres
A shopping centre that is dominated by several large anchors: Discount stores – Wal-Mart Off-Price retailers – Winners Category Specialists – Golf Town, Future Shop, Home Depot Warehouse Club - Costco
Advantages of Malls
Different types of stores – choice for customers Entertainment options – theatres, restaurants Social – ‘mall walkers’, teens Mix can be planned – one stop shopping Out of the elements
Problems Facing Malls
Rising costs – rent, utilities Lack of control – hours, location, signage, window displays Competition – power centres, strip malls and specialty stores Age of the mall Time strapped consumer that does not have time to ‘browse’
Superregional Centres
West Edmonton Mall in Alberta 800 stores, 110 restaurants Amusement park, waterpark, hockey rink, a lagoon & casino 20,000 parking spaces Draws millions of people as a vacation destination
7 Traffic Count: Fairweather 7 References 8 Internal Scan An internal scan is conducted in order to identify if the five factors of the retailing mix: product, value, communication, people, and place are present, and if they are working together in a way that it benefits a specific retailer. The purpose of this report is to determine if Fairweather’s retailing mix includes all five factors and if their specific mix is appropriate for them in regards to their female fashion department. Product Fairweather…