Selection of an Area or Type of Location within a City

In the selection of a particular area or type of location within a city, evaluation of the
following factors is required.
•

Customer attraction power of a shopping district or a particular store:Major

shopping centres like Chandni Chowk in Delhi, Colaba in Mumbai and Commercial Street in Bangalore
attract customers from far off, while small shopping centres located in colonies attract customers from
immediate neighborhood.
•

Quantitative and qualitative nature of competitive stores: Retailers would like

to evaluate the product lines carried by other sores, number of stores in the area,
etc. before selecting the area.
•

Availability of access routes: The area or shopping centre should provide easy

access routes. There should not be traffic jams and congestion MG Road in Bangalore provides easy
access from different t parts of the city and hence has become popular.
•

Nature of zoning regulations: The retailer should also consider the zoning
regulations in the city.
•

Direction of spread of the city: The retailer should consider the direction in
which the city is developing while selection the location.
Selection of a Specific Site

The choice of a specific site is particularly important. In central and secondary shopping centre,
non-anchor sores depend on customers coming to the market and the traffic generated by anchor stores.
The large stores in turn depend on attracting customers from the existing flow of traffic. Where sales
depend on nearby settlements, selecting the trading area is even more important than picking the specific
site.
TYPES OF RETAIL LOCATION

A retailer has to choose among alternate types of retail locations available. It may locate in an isolated
place and pull the customer to the store on its own strength, such as a small grocery store or paan shop in
a colony which attracts the customers staying close by. Or, it may locate in a business district where ther3
are a large number of retail establishments. If it decides to locate its store in a business district, it may
have a choice ranging for, the large shopping centres in the heart of the city or smaller shopping
complexes in a suburb.
The various options available to a retailer in India are shown below:
Free-standing Location
 Where there are no other retail outlets in the vicinity of the store and therefore, the store depends
on its own pulling power and promotion to attract customers. This type of location has several advantages
including no competition, low rent, and often better visibility from the road, easy parking and lower
property costs.
Neighborhood Stores

Neighborhood stores are located in residential neighborhoods and serve a small locality. They sell
convenience products like groceries. Now, even the large organized sector stores, which pull customers
from across the city, are also coming up in suburbs or away from major markets as free-standing
locations. For example, Kemp Fort and LifeStyle stores are free-standing stores in Bangalore away from
major market of the city.
Highway Stores
Highway stores are located along highways or at the intersections of two highways
and attract customers passing through these highways.
Business-associated Location

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