Retail Marketing - Suggest some key evaluation factors retailers have to consider in selecting location sites?
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Suggest some key evaluation factors retailers have to consider in selecting location
The retail location does not address the problems faced by retail organizations because it has tended to concentrate on the technical and policy issues relating to the evaluation and development of new sites, the evaluation factors retailers have to consider in selecting location sites underlines the strategic role of retail location and emphasizes key areas for research relevant to many issues currently facing retail organizations. Thus, it can be core duty of the retailers to recognize and apply such factors for evaluating location sites for possible business venture to realize and come with selection criteria based on the factors such as population that will include age, household size, income levels and so on. While summarizing past successful experience, foreign chain-store enterprises consider location as the primary element in operation. In the process of selecting location of a chain convenience store, the proprietor must analyze lots of factors to optimize his final decision. Retailers and managers must how to analyze the importance of various factors such as on accessibility and cost of the site location and some other core factors involved in selecting location. Location selection play prominent role in retailing due to its high and long-term investments. It is very difficult to make up once an inappropriate convenience store location has been established as conventional approaches to location selection can only provide set of systematic steps for problem-solving without considering the relationships between the decision factors globally. Furthermore, to design successful strategies retailers must take into account not only the marketing environment confronting them today but also anticipates possible competitive and demographic changes and procedure to help retailers formulate a strategic location plan in a dynamic environment. The procedure involve model for assessing site desirability, a criterion for selecting among alternative sites and heuristic to facilitate the computational procedure. Facility location decisions are critical element in strategic planning for range of private and public firms. The ramifications of sitting facilities are broadly based and long-lasting, impacting numerous operational and logistical decisions. High costs associated with property acquisition and facility construction make facility location or relocation projects long-term investments. To make such undertakings profitable, firms plan for new facilities to remain in place and in operation for an extended time period. Thus, decision makers must select sites that will not simply perform well according to the current system state, but that will continue to be profitable for the facility's lifetime, even as environmental factors change, populations shift, and market trends evolve. Finding robust facility locations is difficult task, demanding that decision makers account for uncertain future events. The complexity of this problem has limited much of the facility location literature to simplified static and deterministic models. For competition factors, take the example on the effect of low-cost information on price that Internet retailers will charge the same low price for mass produced goods and that Internet retailers will differentiate to avoid intense price competition. Thus, retail process factors show that when retailing is competitive and there is no uncertainty in demand, costs factors may induce retailers to compete more intensely, thereby reducing retailer margins and improving manufacturer profitability and intensifying retail competition. The growth in population and the enormous shift of people from old to newly developed districts also create new spending demand areas. This is most powerful factor that adhering motivation to generate new retail location sites in order to locate attractive shopping centers, and criteria exist for evaluating alternative sites. For example, recognizing of retail base analytic hierarchy process as being utilized for assigning weights of the criteria for site selection and technique for order preference by similarity to ideal evaluation cues can be used to determine the most suitable alternative using location choices and recognize the factors first before executing and establishing the retail store. For example in the UK, retail stores such as TESCO and Wal-Mart consider such accessibility of features that will address customer satisfaction and convenience of the store such as keeping of pedestrian lines clear and not from within car parking zones and other risk zones. Recognizing that spatial variability in consumer attraction to retail firms may be considered a function of the location of individual retail establishments. A statistical analysis of spatial relationships of important locational considerations can be conducted indicating that location of competition and investment factors are extremely important considerations when attempting to explain differences in the number of consumers attracted to retail firms. Empirical application to national stores of retail chain confirms the differential impact of location characteristics on categories' attractiveness. Tailoring the allocation of store space to location-based differences in factors appeal leads to significant increase in overall chain profitability