Step involved in choosing a Retail Location In order to arrive at the decision on where to locate the retail store a retailer

r needs to first on the region that he wants to locate the store. After identifying the region the following steps Have to be followed . Identifying the market in which to locate the store. Evaluate the demand and supply within that market. i.e. determine the market potential. Identify the most attractive sites Select the best site available
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1. 2.

3. 4.

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Market Identification: The first step in arriving at a decision on retail location is to identify the market attractiveness to a retailer. This is important that retail needs to understand the market well. Determining the market Potential:: The retailer need to take into consideration various elements as shown in format. (features of population) Demographic features of the population The characteristics of the household in the area (average household income) Competition and compatibility (Need to know compatibility & competition in market) Laws & regulations:( good understanding of the laws
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Determining the market Potential

Demographics of population & area

Competition

Trade area analysis

Laws & Regulation

 Trade area analysis: A trade area is the geographic area that generates the majority of the customers for the store. Primary trade area: primary trading covers between 50-80% of the stores customers. Secondary Trading Area: this area contains the additional 15to 25% of the stores customers. Tertiary trading area covers the balance customers These trading areas are dependent on distance and do not always have to be concentric in nature
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Types of Trades areas.

3 & 4 Identify Alternate sites and select the site: After taking decision on the location and market potential the retailer has to select the site to locate the store based on these Traffic Accessibility of the market is also a key factor The total number of stores and the type of store that exist in the area Amenities To buy or to lease The product mix to be offered by the retailer

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