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Retailing Strategy
Retail Market and Financial Strategy Chapter 5, 6 Human Resource Management Chapter 9
Retail Locations Chapter 7 Site Locations Chapter 8 Information and Distribution Systems Chapter 10
PPT 7-3
Retail Locations
Shopping Centers Strip Shopping Centers Shopping Malls City or Town Locations Inner City Main Street Free Standing Sites Other Location Opportunities
PPT 7-5
Power Centers
Target, Home Depot, Office Depot, PetsMart, Best Buy, Sports Authority, Toys R Us
PPT 7-6
Location Strategy
Customer Service
Merchandise Assortment
Pricing
PPT 7-8
Shopping Malls
PPT 7-10
PPT 7-11
PPT 7-12
$500
London
$400 $375
Madison Avenue (57th New York City to 72nd St.) Ave. des Champs Elysee
PPT 7-13
Paris
$360
Rent Traffic
PPT 7-14
City
Strip Center
Shopping Mall
Free Standing
+ +
+ -
+ +
CBD
Strip Center
Shopping Mall
Free Standing
+ -
+ + +
+ -
+ +
+ +
+ + +
?
+ +
?
+ ?
+ +
?
PPT 7-17
PPT 7-18
Specialty Apparel Central Business District, Regional Malls Category Specialists Power Centers, Free Standing Grocery Stores Drug Stores
PPT 7-19
Stand Alone
Types of Leases
Percentage Fixed - Rate Percentage leases lease based on a % of sales. Retailers also typically pay a maintenance fee based on a percentage of their square footage of leased space. Most malls use some form of percentage lease.
PPT 7-20
Percentage lease with specified minimum retailer must pay a minimum rent no matter how low sales are.
Escape Clause
Allows the retailer to terminate its lease if sales dont reach a certain level after a specified number of years, or if a specific co-tenant in the center terminates its lease.
PPT 7-25
Environmental Issues
Above-ground risks - such as asbestos-containing
materials or lead pipes used in construction.
Retailers Protection
Stipulate in the lease that the lessor is responsible for removal and disposal of this material if its found. Retailer can buy insurance that specifically protects it from these risks.
PPT 7-26
Signs
Restrictions on the use of signs can also impact a particular sites desirability
Licensing Requirements
Some areas may restrict or require a license for alcoholic beverages
PPT 7-27