MGT 3230 Chapter Notes - Chapter 5: Environics, Psychographic, Census Geographic Units Of Canada
Chapter 5: Retail location Strategy
LOCATION DECISIONS BASED ON 4 LEVELS
Country Regional analysis Trade Area Analysis Site Analysis
EVALUATING SPECIFIC AREAS FOR LOCATIONS
• Factors to consider:
o Economic Conditions
o Competition
o Strategic Fit
o Costs of operating
FACTORS AFFECTING PROFIT POTENTIAL WITHIN A REGION OR TRADE AREA
ECONOMIC CONDITIONS
• Growth of population
• Employment
COMPETITION
• Level of Competition
o Saturated Trade Area
o Understored Trade Area
o Overstored Trade Area
STRATEGIC FIT
• Consumers that are in the retailers target market
• Attracted to the retailers offerings and interested in patronizing its stores
• Right Demographic characteristics
• Right Lifestyle profiles
OPERATING COSTS
Can vary due to:
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Document Summary
Country regional analysis trade area analysis site analysis. Evaluating specific areas for locations: factors to consider, economic conditions, competition, strategic fit, costs of operating. Factors affecting profit potential within a region or trade area. Level of competition: saturated trade area, understored trade area, overstored trade area. Strategic fit: consumers that are in the retailers target market, attracted to the retailers offerings and interested in patronizing its stores, right demographic characteristics, right lifestyle profiles. Can vary due to: proximity to distribution support. Local, provincial legal and regulatory environment: example section 63 of quebec language charter. Number of stores in an area: best location in each cma (census metropolitan area) Economies of scale versus cannibalization: o(cid:374)e (cid:271)est lo(cid:272)atio(cid:374) is(cid:374)"t the a(cid:374)s(cid:449)er, most chains plan to go into an area with a network of stores, promotion and distribution economies of scale can be achieved with multiple locations. Evaluating a site for locating a retail store.
