Mark retail test #2

Airports

They open up smaller stores to shop by they wait retailers are selling the in demand. Costs are high they have to be open longer hours 7am till 10 or 11pm Location is inconvenience to workers so they have to pay them a higher wage

Smaller centers (convenience and neighborhood centers)

are 10,000 to 60,000 square feet and are typically anchored by a supermarket. They are designed for convenience shopping. These centers typically have 10 to 15 smaller retailers such as a bakery, dollar store, dry cleaner, florist, laundry center, barber shop, and mail service

Convenience, neighborhood, and community shopping centers (also called strip shopping centers

are attached rows of open-air stores, with onsite parking usually located in front of the stores. The most common layouts are linear, L-shaped, and inverted U-shaped. Historically, the term strip center has applied to the linear configuration.

Outparcels

are freestanding stores that are not connected to other stores in a shopping center but are located on the premises of a shopping center, typically in a parking area. (Taco bell, Wendy's, Applebee's)(usually fast food restaurants)

Freestanding

are retail locations for an individual, isolated store unconnected to other stores; however, they might be near other freestanding stores or near a shopping center. (ex: Walmart usually buys the land as long as it follows county laws) (Kohls they can have entrances in multiple parts of the store)

The advantages of freestanding

locations are their convenience for customers (easy access and parking); high vehicular traffic and visibility to attract customers driving by; modest occupancy costs; and fewer restrictions on signs, hours, or merchandise that might be imposed by the managers of planned locations.

Planned Location

- a shopping center developer and/or manager makes and enforces policies that govern store operations, such as the hours that a store must be open. (Lincoln Square)

Unplanned Location

-do not have any centralized management that determines what stores will be in a development, where the specific stores will be located, or how they will be operated. (Mckinney Main Street)

Location and Retail Strategy

A critical factor affecting the type of location that consumers select to visit is the shopping situation in which they are involved. Three types of shopping situations are convenience shopping, comparison shopping, and specialty shopping.

Inner City

City is a low-income residential area within a large city. Empty lots, buildings, and condemned houses attract criminal activity, making living in the inner city relatively dangerous. One of the major causes of urban decay is when businesses relocate from urban settings to suburbs. Inner cities go through, Urban decay is the process of a previously functioning city, or part of a city, falling into disrepair. Some U.S. retailers avoid opening stores in the inner city because they think these stores are riskier and produce lower returns than other areas. Although income levels are lower in inner cities than in other neighborhoods, inner-city retailers often achieve a higher sales volume and higher margins, resulting in higher profits.

Disadvantages of enclosed shopping malls

First, mall occupancy costs are higher than those of strip centers, freestanding sites, and most central business districts. For example, the occupancy cost (rent, common area maintenance, and taxes) for an enclosed mall is almost 140 percent greater than that for an open-air shopping center ($50 compared with $28 per square Second, some retailers may not like mall management's control of their operations, such as strict rules governing window displays and signage. Third, competition within shopping centers can be intense Fourth, freestanding locations, strip centers, lifestyle centers, and power centers are more convenient because customers can park in front of a store, go in and buy what they want, and go about their other errands. Fifth, some malls were built more than 50 years ago and have not been subject to any significant remodeling, so they appear rundown and unappealing to shoppers. Furthermore, these older malls are often located in areas with unfavorable demographics because the population has shifted from the near suburbs to outer suburbs. Sixth, the consolidation in the department store sector has decreased the number of potential anchor tenants and diminished the drawing power of enclosed malls. Finally, the growing sales through the Internet channel is cannibalizing sales in the store channel. For these reasons, mall traffic and sales are declining. Most malls that close are razed; however, mall managers and developers are trying to redevelop some sites

There are several disadvantages to freestanding sites.

First, their trade area might be limited if there are no other nearby retailers to attract customers interested in conveniently shopping for multiple categories of merchandise on one trip. In addition, freestanding locations typically have higher occupancy costs than shopping centers because they do not have other retailers to share the common area maintenance costs. Finally, freestanding locations generally have little pedestrian traffic, limiting the number of customers who might drop in because they are walking by.

Omnicenters

It has to include all 3 the enclosed mall, lifestyle center and power center. New shopping center developments are combining enclosed malls, lifestyle centers, and power centers. Although centers of this type do not have an official name. Omnicenters represent a response to several trends in retailing, including the desire of tenants to lower CAM charges by spreading the costs among more tenants and to function inside larger developments that generate more pedestrian traffic and longer shopping trips In addition, they reflect the growing tendency of consumers to cross-shop, which is a pattern of buying both premium and low-priced merchandise or patronizing expensive, status- oriented retailers and price-oriented retailers, as occurs when a customer shops at both Walmart and Nordstrom. Time-scarce customers are also attracted to omnicenters because they can get everything they need in one place. For example, the 1.3 million-square-foot St. John's Town Center in Jacksonville, Florida, is divided into three components: a lifestyle center with a Dillard's department store anchor, a mini-power center anchored by Dicks Sporting Goods and a Barnes & Noble bookstore, and a Main Street with Cheesecake factory and PF changes restaurants and anchors.

Advantages of enclosed shopping malls

Older citizens get their exercise by walking the malls, and teenagers hang out and meet their friends, though some malls are restricting their admittance in the evenings. Thus, malls generate significant pedestrian traffic inside the mall, especially if they include an Apple Store notes. Second, customers don't have to worry about the weather, thus malls are appealing places to shop during cold winters and hot summers. Third, mall management ensures a level of consistency that benefits all the tenants. For instance, most major malls enforce uniform hours of operation.

Convenience Shopping

When consumers are engaged in convenience shopping situations, they are primarily concerned with minimizing their effort to get the product or service they want. They are relatively insensitive to price and indifferent about which brands to buy. Thus, they don't spend much time evaluating different brands or retailers; they simply want to make the purchase as quickly and easily as possible. Examples of convenience shopping situations are getting a cup of coffee during a work break, buying gas for a car, or buying milk for breakfast in the morning. Retailers targeting customers involved in convenience shopping, such as quick-service restaurants, convenience stores, and gas stations, usually locate their stores close to where their customers are and make it easy for them to access the location, park, and find what they want. Thus, convenience stores, drugstores, fast-food restaurants, supermarkets, and full-line discount stores are generally located in neighborhood strip centers and freestanding locations. Both CBDs and Main Street locations

Specialty Shopping

When consumers go specialty shopping, they know what they want and will not accept a substitute. They are brand and/or retailer loyal and will pay a premium or expend extra effort, if necessary, to get exactly what they want. Examples of these shopping occasions include buying organic vegetables, a luxury automobile, or a high-end road or mountain bike. The retailers they patronize when specialty shopping also are destination stores. Thus, consumers engaged in specialty shopping are willing to travel to an inconvenient location. Having a convenient location is not as important for retailers selling unique merchandise or services.

Theme/festival center (tourist traps and avoided by locals)

a unifying theme generally is reflectedin each individual store, both in their architecture and the merchandise they sell. Theme/festival centers are a relatively new type of shopping center. In the late 1970s, a private developer took Boston's historic Faneuil Hall and reconceived it as a "festival marketplace." The goal was to attract multitudes of tourists and local visitors by being more fun and interesting than a basic suburban mall. The Faneuil Hall Marketplace resonates with a colonial history theme. Subsequent applications of the idea have included Baltimore's Inner Harbor and the Grand Canal Shops at the Venetian Hotel in Las Vegas. When they first opened, some of these festival locations were successful at drawing visitors and reinvigorating urban centers suffering from crime and an exodus of population. But now, with invented themes, generic stores, and vigorous competition from other nearby retailers, such centers are viewed by many as tourist traps and are avoided by many locals. In 1985, the themed shopping center that opened on Pier 17 in Lower Manhattan promised to reinvigorate the South Street Seaport. After decades of disappointment though, new owners tore down the three-story building and sought to replace it with a controversial mixed-use development hosting retail, residential, and commercial space. (Six Flags/Walt Disney World/ State fair)

Power centers

are shopping centers that consist primarily of collections of big-box retail stores, such as full-line discount stores (Target), off-price stores (Marshalls), warehouse clubs (Costco), and category specialists (Lowes, Staples, Michaels, Barnes & Noble, Best Buy, Dick's Sporting Goods, and Toys"R"Us). (collection of all big box stores) Although these centers are open air, unlike traditional strip centers, power centers often consist of a collection of freestanding (unconnected) ""anchor" stores and only a minimum number of smaller specialty store tenants. Many power centers are located near an enclosed shopping mall. Power centers offer low occupancy costs and modest levels of consumer convenience and vehicular and pedestrian traffic. The growth in power centers reflects the growth of category specialists. Many power centers are now larger than regional malls and have trade areas as large as regional malls. (modest convenience) Ex Mansfield Town Crossing

Outlet centers

are shopping centers that contain mostly manufacturers' and retailers' outlet stores. Some outlet centers have a strong entertainment component, including movie theaters and restaurants to keep customers on the premises longer. For example, the Outlets at Orange, in Orange, California, has a multiplex theater, with an IMAX movie theater; a children's play area; and Thrill It Fun Center. Furthermore, increasing numbers of high-end fashion brands and designers are opening shops in outlet centers, seeking to gain access to entry-level consumers who might be willing to pay a little less to get last season's Alexander Mcqueen Typically, outlet centers are in remote locations. These remote locations offer lower costs and reduce the competition between the outlet stores and department and specialty stores offering the branded merchandise at full price. But as outlet centers have grown more common, consumers have grown to expect ready access to them, such that operators are opening more proximal centers: 70 percent of the outlet centers that opened in one recent year were in metropolitan areas that contained at least 1 million residents. (allen outlets)

Lifestyle Centers (focus on specialty stores such as restaurants)

are shopping centers that have an open-air configuration of specialty stores, entertainment, and restaurants, with design ambience and amenities such as fountains and street furniture. Lifestyle centers resemble the main streets in small towns, where people stroll from store to store, have lunch, and sit for a while on a park bench talking to friends. Thus, they cater to the "lifestyles" of consumers in their trade areas. Lifestyle centers are particularly attractive to specialty retailers. People are attracted to lifestyle centers not only because of their shops and restaurants but also because of their outdoor attractions such as a pop-up fountain, ice cream carts, stilt walkers, balloon artists, magicians, face painters, concerts, and other events. Because some lifestyle centers have limited auto access, customers can be dropped off right in front of a store. Lifestyle centers are open air, so bad weather can be an impediment to traffic. But some centers, like the Easton Town Center in Columbus, Ohio, Due to the ease of parking, lifestyle centers are very convenient for shoppers, and the occupancy costs, like those of all open-air developments, are considerably lower than those for enclosed malls. But they typically have less retail space than enclosed malls and thus may attract fewer customers than enclosed malls. Many lifestyle centers are located near higher-income areas, so the higher purchases per visit compensate for the fewer number of shoppers. Finally, many lifestyle centers are part of larger, mixed-use developments, which are described in the next section. thrive despite the climate. When the weather is bad, tough Ohioans simply bundle up and take a stroll.

Merchandise kiosks

are small selling spaces, typically located in the walkways of enclosed malls, airports, college campuses, or office building lobbies. Some are staffed and resemble a miniature store or cart that could be easily moved. Others are twenty-first-century versions of vending machines, such as the Apple kiosks that sell iPods and other high-volume Apple products. For mall operators, kiosks are an opportunity to generate rental income in otherwise vacant space and offer a broad assortment of merchandise for visitors. When planning the location of kiosks in a mall, operators are sensitive to their regular mall tenants' needs. They are careful to avoid kiosks that block any storefronts, create an incompatible image, or actually compete directly with permanent tenants by selling similar merchandise.

Larger centers (community centers)

are typically 25,000 to 50,000 square feet and are anchored by at least one big-box store such as a full-line discount store, an off-price retailer, or a category specialist.

The central business district (CBD)

is the traditional downtown financial and business area in a city or town. Due to its daily activity, it draws many people and employees into the area during business hours. There is a high level of pedestrian traffic, but shopping flow in the evening and on weekends is slow in many CBDs. Vehicular traffic is limited due to congestion in cities, and parking problems reduce consumer convenience. Many CBDs have a large number of residents living in nearby areas.

Mixed-use developments (MXDs)

combine several different uses into one complex including retail, office, residential, hotel, recreation, or other functions. They are pedestrian-oriented and therefore facilitate a live-work-play environment They appeal to people who have had enough of long commutes to work and the social fragmentation of their neighborhoods and are looking for a lifestyle that gives them more time for the things they enjoy and an opportunity to live in a genuine community. In addition, MXDs are popular with retailers because they bring additional shoppers to their stores. They are also popular with governments, urban planners, developers, and environmentalists because they provide a pleasant, pedestrian environment and are an efficient use of space. For instance, land costs the same whether a developer builds a shopping mall by itself or an office tower on top of the mall or parking structure.

Advantages of outparcels

compared with other freestanding locations are that they can offer customers the convenience of a drive-through window, extensive parking, and clear visibility from the street. These locations are popular for fast-food restaurants and banks also drugstores.

Enclosed shopping malls

have several advantages over alternative locations. First, shopping malls attract many shoppers and have a large trade area because of the number of stores and the opportunity to combine shopping with an inexpensive form of entertainment.

The primary disadvantage

is that smaller centers have a limited trade area due to their size, and they lack entertainment and restaurants to keep customers in the center for a longer time. In addition, there is no protection from the weather. As a result, neighborhood and community centers do not attract as many customers as do larger, enclosed malls

Store-within-a-store

locations involve an agreement in which a retailer rents a part of the retail space in a store operated by another independent retailer. recall the brand later, even after they return home. The host retailer basically "sublets" the space to the store-within retailer. The store-within retailer manages the assortment, inventory, personnel, and systems and delivers a percentage of the sales or profits to the host. Grocery stores have been experimenting with the store-within-a-store concept for years with service providers such as coffee bars, banks, film processors, and medical clinics. Starbucks operates cafés in many retail stores For the local grocers, many of whom own both the grocery store and the Ace franchise, the retail innovation should help drive more traffic into their stores. For customers, the collaboration means they can pick up both groceries and the lug nuts they've been needing in a single trip. (sephora in Macys)

The primary advantages of convenience, neighborhood, and community shopping centers (also called strip shopping centers

of these centers are that they offer customers convenient locations and easy parking, and they have relatively low occupancy costs.

Urban locations

offer three main types of locations: the central business district, inner city, and gentrified residential areas. Across these areas, retailers are revising their offerings to reflect the restrictions associated with these locations.

Main street

refers to the traditional downtown shopping area in smaller towns and secondary shopping areas in large cities and their suburbs. Over the past 30 years, many downtowns in small U.S. towns have experienced decay similar to that of inner cities. In response, smaller towns are undertaking redevelopment programs to draw residents back to their downtown areas, and retailers play a major role in these efforts. (Share more characteristics as gentrification areas.) They cater specifically to the people that work in that area fewer stores because they are catering to the people that work in that area.

Comparison Shopping

shopping situations are more involved in the purchase decision. They have a general idea about the type of product or service they want, but they do not have a well-developed preference for a brand or model. Because the purchase decisions are more important to them, they seek information and are willing to expend effort to compare alternatives. Consumers typically engage in this type of shopping behavior when buying furniture, appliances, apparel, consumer electronics, and hand tools. (furniture, appliances, apparel, consumer electronics etc. ) Example: Enclosed malls offer the same benefits to consumers interested in comparison shopping for fashionable apparel Category specialist like to locate in power centers because they benefit from consumers.

Pop-up stores

stores are stores in temporary locations that focus on new products or a limited group of products. These "stores" have been around for centuries as individuals sold merchandise on city streets and at festivals or concerts, such as the Newport Jazz Festival, weekend craft fairs, or farmers' markets. For instance, in New York's Columbus Circle, 100 vendors sell a variety of gifts from yogawear to handmade glass jewelry. Cities around the United States generally welcome these temporary retailers because they bring people and money to areas, creating excitement. Local retailers, who pay high rents, aren't necessarily so enthusiastic because some of the temporary retailers sell competing merchandise. Since shopping center vacancies have increased and occupancy costs have decreased, retailers and manufacturers are opening pop-up stores in these vacant locations. Pop-up stores are particularly attractive to retailers with highly seasonal sales such as Toys"R" Us. Toys "R" Us has been experimenting with pop-ups for several years, starting with separate Express stores and then expanding its options by opening small, temporary stores within Macy's stores in the months leading up to the holiday season (see the next section on stores- within-a-store). Other pop-up experiments are even more creative, including a pop-up store in Manhattan's trendy Meatpacking district to present a new Volvo model,38 temporary stores selling buttons prompting the Republican or Democratic Parties in the weeks leading into their national conventions, or Life of Pablo shops that Kanye West has opened in various.

Gentrified Residential Areas

the renewal and rebuilding of offices, housing, and retailers in deteriorating areas—coupled with an influx of more affluent people that displaces the former, lower- income residents. Young professionals and retired empty-nesters are moving into these areas to enjoy the convenience of shopping, restaurants, and entertainment near where they live As a result, many inner-city consumers face food deserts, defined as areas that lack ready access to affordable fresh fruits, vegetables, dairy, whole grains, and other healthful foods, as might be provided by grocery stores or farmers markets.