Choosing a spot for a retailer is a strategic decision that is too much to return in it. Companies have to be sensitive while choosing the positioning especially in features like economical, inhabitants and competitive advantages. The location is one of the important elements that the clients use in choosing a store. Location acts as part of the competitive edge that cannot any store fulfill it. The right location can make difference between success and failing however the good location is related also to the mark market, costs and its opponents. (Ph. D. Mustafa KARADENZ, 2009)
This topic will feel the strategic need for the location decisions, targets of location decisions, the website location due to the position in the resource chain, procedures retailers have to follow for choosing a location Moreover, will investigate the types of the locations; The isolated store, the unplanned business region, the prepared shopping centre.
Achievement or failure is because of the specs of the encompassing area of the location. Sales in the stores not only from folks and people living next to the store but also individuals away or who comes from abroad. The sales of any retailer depends or happens mainly at the store itself due to the location than it. Location is one of the very most essential and important issues to a dealer. Many stores opened and closed down down credited to wrong locations that they exposed in it. Some sellers desire a good location that suits its position and image. There are several different reasons why location is important for sellers. (Ph. D. Mustafa KARADENZ, 2009)
Lastly, Retailers need to be careful while choosing the positioning anticipated to two reasons. First, the location is so important things for the client to find the store. So, the closest one most of us go to it and buy our needs and the main one also with easy auto parking and a suitable level of traffic around it. Second, location is so important to make survivable competitive benefit because retailers can change services or process or the nice variety but, it is difficult to change the positioning as it is hard to buy or retain a fresh real state which cost excess amount and maybe they are experiencing a long-term contract with the owner of the place so that it will be hard to leave it. (K, 2005)
The most significant thing of the positioning is the customers. Every retailer must have the ability to reach its customers easily and sellers need potential customers that walk through the store at all times to possess high pedestrian traffic. A store with a high pedestrian traffic is one of the better. (Barry Berman, 2010)
The decision of the location has a high strategic importance. If the retailer is an inexpensive producer so, he'll go to a location that has low labor and material costs or being near to the market of the recycleables to reduce the travel costs. Retailers that have a goal to grow up and increase its revenue will go to a location that has high pedestrian and vehicular traffic or having many branches for growing. Location can have an impact of capacity and versatility. Certain specific areas may hinder a future expansion option. In addition to, some areas may have some rules against being specific goods. (Stevenson, 2009)
Location decision has an effect on the investment requirements, revenues and operating costs. A bad choice of the positioning will bring about poor labor, low competitive edge, transportation costs or not ideal supply of recycleables. Also, the bad location will result in lower variety of customers and it impacts the resource chains. (Stevenson, 2009)
The location selection is determined by where is the shop in the supply chain. If the business enterprise in the beginning of the supply chain and relating in delivering the raw materials so, may be found nearby the way to obtain the raw materials. If the merchant by the end of the resource string so, will locate within an area that suits his conditions like buyer income, years, human population or pedestrian traffic. If the retailer in the middle of the supply chain so, can be found between your suppliers and their marketplaces. (Stevenson, 2009)
Important thing of the positioning is good for the labor that are working in the store because the working people need to be available locally and near to the store to come the work hours in time and not to spend your time and effort in transportation before and following the working time.
Retailers have to evaluate the Geographic trading areas to learn the characteristics of the residents and the prevailing retailers. They have to determine whether to open as an isolated area or in a planned shopping centre or an unplanned Business area. Then choose and decide exactly what will they open up then finally analyze the alternative sites contained in the retail location type. (Barry Berman, 2010)
There are three different types of locations, The Isolated Store, The Unplanned Business Area along with the Planned Shopping Centre. Generally, the unplanned business region and the designed shopping centre are popular and well-known to customers than the isolated store. Each has its own characteristics due to its opponents, its nearness to office complexes, parking and many other factors. (Ph. D. Mustafa KARADENZ, 2009)
First the Isolated store, it is a sort if store which is available free and by themselves from other stores like for example on a high way or a road. You can find no retailer close to it so that it shares traffic. This type of location has various advantages like, easy car parking can be produced, rents are cheap in these areas, there is no competition in the close to area, you can find flexibility in rules and functions, the store can be seen easily, isolated stores is good in convenience outlets. On the other hand, it has cons like, many people like variety of shopping, this kind of store must be built alternatively than rented, advertising bills need to be high as it will be difficult to be drawn by the initial customers, people won't travel very way to get such a store, this kind of store will hold the maintenance, security, outdoors lightening and garbage collection exclusively there will never be sharing in these expenditures. (Barry Berman, 2010)
The second type is the Unplanned Business Area, this kind is stores exposed alongside one another or in a near to each other in a way that the mixture of stores is not due to planning. Stores locates scheduled to what is good for them not the area. You will find four types of the unplanned business area; Central business district, Secondary business region, Neighborhood business region and String. (Barry Berman, 2010)
The Central business region is similar to the downtown. It has the high density of office buildings structures and stores, both of pedestrian and vehicular traffic are so high. The arrangement of the stores doesn't follow a specific format, it will depend on when open first, and take this location and good fortune. Central Business Region attracts too many shoppers credited to wide selection of prices, variety of customer services, access to public transportation, near to commercial and sociable facilities and good arrangement of excellent goods and services. Alternatively, In Central Business Region is difficult to find a car parking, is far away from people who are living in suburbs, rents in these areas are very costly. (Barry Berman, 2010)
The Secondary Business Area is unplanned area that is found in the intersection of two major pavements. This district has small stores than the Central Business Area and less in the item variety and smaller trading area and provides more the convenience products. (Barry Berman, 2010)
The Community Business Area is a shopping area that found in a single home area. It includes small stores such as restaurant, barbershop, grocer, dried out clean. The type of district is found on the major road of the residential area. These areas provide auto parking, good location and long store time. (Barry Berman, 2010)
Then comes the String which is also unplanned shopping area which includes a group of merchants with a same product line through one street or a highway like for example, car dealers. The features of the a String location is the same of the Isolated stores like cheap rent, car parking, lower operating costs and easy to be observed. Much less the Isolated store, the String has a competition in its location. (Barry Berman, 2010)
Then finally we can reach the Planned Shopping Center which consists of the same kind of stores that is all managed, managed, managed and designed as a one thing. The organized Shopping Centre includes Regional Shopping Centre, Community Shopping Centre and Community Shopping Centre. The designed shopping centre has many advantages like good layout of goods & services on an extended prepared area, easy car parking for customers, high pedestrian traffic, these types of shopping center and malls are growing up fast, there is lower robbery rates in the stores. Alternatively, it offers some drawbacks for example, there's a high competitive benefits through the shopping mall, there is rules and limitations on the nice that can be purchased in the mall. (Barry Berman, 2010)
Now we will proceed through a few examples of retailers that contain bad and the good locations and the effect of its location on its performance. A local example in Egypt, Hyper One which is one of the biggest merchants in Egypt is situated in a perfect locations where they have its private auto parking so, it doesn't make any high traffic around it. In the same time, it is situated in places where around it there are many residential chemical substances and has a good pedestrian traffic. So, it isn't in an isolated area and not a jammed area. On the other hand, Metro is found in places which may have high traffic which is difficult to find a parking and there are many other supermarkets around it. Generally, the Egyptian people choose the locations of merchants that can certainly reached and a good car parking area and a low traffic area around it.
An example for an Isolated Store is Metro which is in the Fifth Arrangement, New Cairo. This branch of Metro is available alone in this field and there is absolutely no any residential properties close to it. You could park your car easily and there is no high traffic around it. Also, there is no competition with others and the lease in this field is cheap set alongside the other Metro's branches.
An example for a Central Business Area is Korba, this area has a high density of office complexes and shops. The pedestrian and vehicular traffic in Korba are always very high. The stores don't follow a particular sequence. The retailers there has a higher variety in goods offered and in prices and easy access to transportation and cultural facilities. Korba is far away from people residing in the suburbs furthermore, the lease in it is so expensive.
An exemplory case of a Neighborhood business area, In Rehab a Residential element on the Cairo-Suez highway, this ingredient has a little malls inside it to serve the folks living there. Rehab includes two department stores to serve a nearby, each you have the primary retailers like, a grocer, barbershop, supermarket, restaurant and a cafe. Also, In Madinaty a Domestic compound before Sherouk on the Cairo-Suez road, has a shopping mall to create Arabesque which has a grocer, and a tiny very market, three cafes and fast food restaurants to serve the residing people there.
An exemplory case of a String, Damascus Street in Heliopolis. It really is a long streets where it has many stores that buy extra parts of autos. This street has huge variety through its stores, any extra part you need it you can find it in this road and buy it easily in a short time. It will save time for you rather than heading to different locations, many stores are accumulated all together in this streets.
Mall of Arabia can be an example of a Planned Shopping Center, where it includes hundreds of stores which sell various sorts of goods and services. Also, it includes many cafes, restaurants and cinemas. It comes with an interesting wide open area where there is a large colorful fountain which the water dances with the music, so while shopping if you get bored or exhausted you can go to the fountain and sit down for awhile and enjoy your time and effort and then return back for shopping. This is something that gives strength to Shopping center of Arabia as it isn't found in other SHOPPING MALL in Egypt. Moreover, there is a huge supermarket in the first floor which is Spinney's. Shopping center of Arabia has a huge private auto parking that may take up to 9, 000 autos and you may reach public travelling there easily; taxis and buses in addition to, its immediate and easy access and entrances. It really is located in area that doesn't have high traffic and can be reached easily even the people who are living far away from it.
Wal-Mart in China is continuing to grow up rapidly which is having now two community markets, three Sam's golf club and forty two supercentres. It includes more than 25, 000 uses. Wal-Mart becomes in a position to contribute itself in the neighborhood economy by bringing out new advanced solutions and increase its efficiency and services to the neighborhood customers. Among the important factors that make Wal-Mart have a high position in the Chinese language market is the locations so it acquires. (Stevenson, 2009)
Macy's A SHOPPING MALL Retailer, it is found in america of America. It really is found in prepared shopping malls, it is one of the primary merchants in the shopping centers. It offers many entrances and a big parking whole lot. So, it has a good location and there is no jam traffic around it so, it helps you to save time and effort for the clients while shopping. (Barry Berman, 2010)
Harborplace is a leading central business district. It is located around a huge business districts and this impacts the pedestrian traffic that come back with a good effect on Harborplace in addition to, the entertainment facilities that Harborplace offers. (Barry Berman, 2010). Nowadays, Starbucks operates in a number of locations like Isolated locations, downtown business districts, planned shopping centers and a great many other sites. By this, Starbucks achieves various geographic markets. (Barry Berman, 2010)
One of the world's well-known retail brands is the Hong Kong Megamall because it can be an revitalized environment of imagination and innovation. It has a huge parking area that can have a capacity of 850 vehicles and a fairly easy direct access to taxis, buses and a place. Its dramatic setting and easy convenience put itself in a high position in the world's retailing market. (Barry Berman, 2010)
As shown in the above mentioned paragraphs, that such a good location comes back with huge benefits to the retailer. A good parking or a location with a good traffic would make a big difference with the client for choosing this dealer and preferring it on a different one. This requirements for a store to be fulfilled may need much money because a good location, the car parking areas and the entrances need are highly expensive however the revenues that come back on him because of these strengths may surpass any cost the merchant paid. By these advantages many marketing demographics will go through the retailer and provide them services to buy.
In our world, the assessment of the location has obtained much more value than before. The quick increment of the competition has made many companies to be one step earlier than their rivals and works effectively through the site selection and exactly how to manage it. Within the retail shopping centers, not only the retail super markets are present but also, fast food restaurants, cinemas and other stores. So, customers when coming to the guts can do shopping, eat or watch films and this earnings with a good gain for the guts, and the customer will be a normal visitor to the centre. (Ph. D. Mustafa KARADENZ, 2009)
In choosing a retail location, first of all the form of the location is decided whether an isolated store or unplanned business area or planned shopping mall and then for example in a high way or in a little internal block. Then following this, the overall location is given. There is a theory call the One-Hundred percent location, which is the research and analysis of the chosen sites to find the most optimum site for the retailer (Barry Berman, 2010). There are some factors must be examined before finding the right location which are the vehicular traffic, car parking and transportation facilities, pedestrian traffic, the store composition and the characteristics of every site.
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