Submitted to :

Mr. Sachin Bhatnagar

Submitted
by :
Ashruta Singh
Gunjan
Dalmia
Rahul Raj

Location Strategies for Retail Business- shopping centers/malls

The importance of the location decision is due to the following factors. Location is a major cost
factor because it,
Involves large capital investment,
Affects transportation costs,
Affects human resources cost.
Location is a major revenue factor in retail business because it
Affects the amount of customer traffic
Affects the volume of business

The terms location and site are often used interchangeably but there is a distinct difference
between the two. Location is a broader concept, which denotes the store and its trading area
from where a majority of its customers originate, while a site refers to the specific building or
part of the building where a store is located. Location and site characteristics should interact
in a positive and synergistic way with a stores merchandising, operations and customer
service characteristics. For example, a designer mens store located in an up market shopping
centre or a mall near posh residential colonies, housed in an attractive building with adequate
parking facilities.

Levels of Location Decisions and its Determining Factors

A retailer has to take the location decision, basing on three aspects:
Selection of a city
Selection of an area or type of location within a city
Identification of a specific site

1. Selection of a City
Size of the citys trading area: A citys trading area is the geographic region from which
customers come to the city for shopping.
Population growth in the trading area: The larger the population of the trading area, the
greater the potential of the city as a shopping location. A high growth and population in the
trading area can also increase the retail potential.
Total purchasing power and its distribution: The retail potential of a city also depends on the
purchasing power of the customers and its distribution networks in its trading area.
Total retail trade potential for different lines of trade: A city may become specialized in
certain lines of trade and attract customers from other cities. (Moradabad has become an
important retail location for brassware products while Mysore is
famous for silk saris.)
Number, size and quality of competition: The retailer also considers the number, size and
quality of competition before selecting a city.
Development cost: The cost of land, rental value and other related cost.

2. Selection of an Area or Type of Location within a City

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 centers 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 stores, 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.
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.

3. Selection of a Specific Site

The choice of a specific site is particularly important. In central and secondary shopping
centre, non-anchor stores 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.
The shopping center building is preplanned as a merchandising unit for interplay among
tenants. Its site is deliberately selected by the developer for easy access to pull customers
from a trade area. It has on-site parking as a common feature of the layout. The amount of
parking space is directly related to the retail area.
Some other important features of a shopping centers
Customers like the shopping center's convenience. They drive in, park, walk to their
destination in relative safety and speed. Some shopping centers also provide weather
protection and most provide an atmosphere created for shopping comfort. For the customer,
the shopping center has great appeal.

A particular shopping center depends on the market and management. A small shopping
center may need only one children's shoe store, for example, while a regional center may
expect enough business for several.
The management aspect is simple to state: Developers and owners of shopping centers look
for successful retailers.

STORE LOCATION
The mall is known as Patna Central and is
located at Frazer Road, Patna.
Located in the heart of the city, Central
believes its customers should not travel long
distances to reach them. Instead, they must be
present in popular customer destinations.
It has a ground floor with additional 3 floors
catering to the various needs of the customers.
Central also provides with central square, a
dedicated space for product launches, events,
displays, exciting shows and exhibition.

Evaluation criteria for a location

Size of trade area.

Occupancy cost of location.
Pedestrian and vehicular traffic.
Restrictions placed on store by property managers.
Convenience for customers.

The Importance of Store Location

- Store location is most often the first

consideration in a store choice.
- Having a good location increases chances
of developing a strong sustainable
competitive advantage.
- Location decisions can be risky and should
be well-thought out.

Shopping Malls
A group of retail and other commercial establishments that is planned,
developed, owned and managed as a single property.
Usually developer and shopping mall management carefully select a set of
retailers that are complementary to provide consumers with one stop shopping
experience with well balanced assortment of merchandise.
Maintains the common facilities parking, security, lighting, outdoor signage
for the centre and special events to attract consumers
Stores within the centre pay a negotiated annual fee based on size to cover
maintenance costs.
It may place restrictions on operating hours, signage and type of merchandise
stored.
It has one or two major retailers known as Anchors. Anchors are wooed by the
developer because they attract a significant no. of consumers and are
appealing to consumers and other retailers.

Enhancing the Mall Experience

Mall managers try to make malls more of an enjoyable experience in an effort to keep people shopping as
long as possible

Common areas
Family lounges
Great food
Playgrounds
Entertainment

Shopping Malls
Advantages

Wide variety of stores

Wide assortment of merchandise
Shopping and entertainment
No inclement weather
Uniform hours of operation
Attracts many shoppers

Disadvantages

Occupancy costs are generally higher.

Mall control over business operations.
Competition can be intense.

Store Location- Customer Selection

A critical factor- how consumers select a particular shopping location depends upon the
shopping situation.
Convenience shopping.
Comparison shopping.
Specialty shopping.

Convenience shopping

Indifferent towards: Retailer, brand and price

E.g. Coffee during work break
Dont spend time in brand evaluation
Retailers locate stores close to customers, offer easy parking, access and location
Located in the neighborhood

Comparison shopping

Have a general idea about the product/service they want, but no strong preference for a
brand ,retailer or a model.
Seek info, spend effort ,take time in making a purchase decision.
Competing shops present close to each other to increase consumer traffic
E.g. Furniture, appliances ,apparel.

Specialty shopping
Consumers know what they want and dont accept a substitute.
Brand, retailer loyal and pay a premium /spend extra effort
E.g. designer perfumes, clothing.
Will travel extra to obtain that item.
Thus location- not important for retailers selling unique merchandise.

Retail Mix Strategies

Product

4 Ps + 3 Ps of
Marketing

Price
Promotion
Place
People
Process
Physical Environment

Product

MENS WEAR
Formal
Semiformal
Casual

WOMENS WEAR
Casual
Formal
Ethnic
KIDS WEAR
Casual
Ethnic

Line

WOMENS ACCESSORIES
Footwear
Wrist Watches
Perfume
Eyewear
Bags
Jewellery
Cosmetics

OTHERS
Kitchen and Home Appliances
Bed sheets and Furnishing
Toys and Games

Brands in each Category

Mens wear (formal, semiformal, casual)
Turtle
Allen Solly
UCB
RIG
Flying machine
Success
Bare denim
Indian terrain
Wrangler
Peter England
Van heusen
Color plus
U.S.Polo assn
Lee
Indigo nation
Lee cooper
Manchester
Wills
Arrow
Killer
Louis philippe
John players
Shatranj
FCUK
John miller
Jack and jones
Scullers

Womens Wear
(Formal, Casual, Ethnic)

Veromoda
Only
Wills lifestyle
Latin quarters
Oxygen
Allen Solly
US Polo Assn
UCB
Bossini
Arrow ladies
And
Wills Classic
Van Heusen

Kids wear
Ruff
RIG
Bare kids
Sculler 2
Disney
Gini and jony
UCB
Lee cooper
junior
Elle kids

Inner wear
Jockey
Enamour
Amante
Valentine
Sweet dreams
Bwitch
Trimph
Hanes

Active wear
Converse
All star
Champion
Classic polo
Nike
Sketchers
Puma
Fila

Perfume

Footwear

Inch 5
Clarks
Tresmonde
Red tape
Global step
Rocia
Allen solly

Police
Gap
Tommy Hilfiger
Guess
Nina ricci
Escada
Bulgari
Caroline herrerra
Elizabeth aden
Hugo boss

Jaguar
Lacoste
David beckham
Britney spears
Ed hardy
Ferrari
Azzaro

Eyewear
Ray ban
French connection
Scott
Sprint
Titan
Provogue
Image
Opium
Timmy Hilfiger

Cosmetics
Loreal
Maybellene
Revlon
Faces
Color bar
Lakme
Lotus
Chamber

Jewellery
Pretty women
Sarah
Sia
Zaveri pearls
Ivory tag

Watches
Kenneth cole
Fastrack
Tommy Hilfiger
Timex
Guess
Fossil
Aspen
Calvin klein
DKNY
Cassio

Bags
Fiorella
Baggit
Lino perror
Modaac
Lavie
Cartlon
VIP
Fastrack
Skybags
Capresse

Allen solly
Blue and blues
Holic
High design
Delsey paris
American tourister
Emisent Germany

Toys and games

Barbie
Hot wheels
Funskool
Baby pure
Fisher price
Disney
Baby world
Rastan

Kitchen wear
Corelle
Serve well
Heluxe
Laopala
Fackel man

Bedsheets and
furnishing
Spaces
Portico
Tangerine
Living assence
Bombay dyeing
Home Appliances

Voltas
Whirlpool
Panasonic
LG
Samsung

Electrolux
Philips
Bajaj
Morphy
Richards

After Sales Services

Free exchange within 30 days from
the date of purchase
Bill
Note at Entry
Credit Note
Purchase

Pricing

Strategies

Advertised Reference Pricing

Communicated to the consumer as being the normal or most commonly

charged or undiscounted price
Provide an external reference against which an offer price can be judged
Example: Jack & Jones Denim is at Rs.4,500/ now at Rs.3,500/- only

Bait Pricing
Involves inciting consumers by way of offering discounts
Aims to make consumers buy more expensive products
as there are very few items available at discounted
price.

 Loyalty Cards

Current Offers

CPL: Centrals Loyalty Programme

Rs.100 = 4 points

No discounts
New arrivals

Gift Vouchers

Available in various denominations

Can be redeemed within the given period

Advertising

Billboards/Hoardings
Newspaper ads
Text messages

Place

It is known as a mall in Patna and named as

Patna central
It is located at Frazer road, Patna
It has a ground floor with additional 4 floors
catering to the various needs of the
customers
Area: very crowded and amidst the city
Aim: Try to bring shopping as a new and
relaxing experience for their shoppers
Being a city hub, provides the opportunity to
cater to the needs of the emerging youth by
providing a wide range of products from
various brands.

People

Employees
Adequate number of employees
Well educated and well behaved
staff
Good knowledge about the
available product range across the
brands

Management

Store Manager
Assistant Store Manager
Department Managers
Culture
HR Manager
Healthy working culture
VM Manager
Effective Customer
interactions
Customer Service
Customer Oriented
Arrival is acknowledged
attitude
Staff available for help at eyesight

Cross sell to value to customer experience

Gift Central

Value added service which has

become a reason of smile for the
customers.
It is not available all the time at
Patna Central.

Beauty Central
It provides free makeover facility
Helps to save time & money
The effort is made to make the
ambience more comfortable and
cheerful

Process
Radio Central

It is added for the customers

entertainment
Controlled by CSD
Timing: 11.30 AM to 9.30 PM
It includes :
Announcement(paging) of Offers
Music played in Mall

WiFi Central

Gives the facility to access to fast speed

connectivity to the customer.
Flower Central internet
The wi-fi works near CSD at 4th floor.
It includes greeting customers with flowers
The service is not functional right now
Unavailability of vendors

Physical Environment
Internal
Visual communication, lighting, colour scheme,
fragrance, music
Used to stimulate customers perceptual and
emotional responses
Influences their buying behaviour
Variety of fixtures

Blend of culture with luxury feel

External
Grand
and
attractive
building
Free Space around the main
building
Parking Area

Store Operation
Efficiencies, and therefore profitability
Consistency and reliability in production and service
Fewer errors in all areas
A way to resolve conflicts between partners
A healthy and safe environment
Protection of employers in areas of potential liability and personnel matters
A roadmap for how to resolve issues-and the removal of emotion from
troubleshooting- allowing needed focus on solving the problem
A first line of defense in any inspection, whether it be by a regulatory body, a
partner
or potential partner, a client, or a firm conducting due diligence for a possible
purchase
Value added to your business should you ever wish to sell it.

Store Opening

Manager responsible for daily store opening/closing to be of the rank of an assistant

department or above.
Store Manager and store operations manager should be present for a store opening
and closing at least once a week.
Designated managers is responsible for collecting the keys of the store from the
manager responsible for opening/closing for the previous prescribed period, on the last
day of such previous period. Details to be recorded in the key movement register.
Once all the shutters are opened the authorized person should ensure that the relevant
keys are returned to the keyboard.
Customer entry point should be opened at the time of business hours.
Designated manager responsible for opening the store should tally the previous days
closing checklist against his/her opening checklist.
The security supervisor should ensure that all security staff is present at their
respective duties that is toilets, trial-rooms etc.
The staff from over the counter sections should remove the seals from the counters,
open their drawers and ensure that the merchandise is well displayed.
The security at the baggage counter should check for any unclaimed baggage at the
end of the day.

Store Closing
The manager scheduled by the store manager is the only person authorized to close the
store.
Closing of the store shall start from the top floor of the mall to the bottom floor of the mall
or as planned by the store manager.
During store closing, the closing team should lock and put brown paper seals on the locks
on all doors/windows.
All seal should bear the signature of the closing manager with the date.
If the designated opening manager notices that, any of the seals has been tampered with
immediate investigation should take place after informing the store manager.
During closing it should be ensured that all lights ACs, fans or any inflammable appliances
are put off and water taps are closed.
All trolleys should be arranged inside the store before store closing. The trolleys should be
counted and the record of the same should be maintained in the trolley register.
The security at the baggage counter should check for any unclaimed baggage at the end
of the day and should hand over to the security manager for depositing the same with the
CSD the next morning.
Closing manager should ensure that the security guards are in place after the store is
closed.

Night Work
All the night work permits should be authorized by the store
manager/operations manager before 4 pm of the same day.
Material declaration pass record the equipment's/material/personal belonging
taken in the mall. The security guard should sign off after striking the blank
columns.
Nobody can leave the mall once the mall is sealed. Men and materials can
leave in presence of the opening manager.
The material declaration should be signed by a different security guard, when
the night workmen leave.

Store
Details
Store Details

Store
Details
Store Manager
Location of store

Frazer road
Suraj Shah

No. of employees

400 (300 Brand

Employees
100 Central Employees)

Size of the store

1 lakh Sq/ft

Average footfall / weekdays

Conversion

3000 / Approx 20%

Average footfall / weekends

Conversion

6000 / Approx 20%

Average Footfall during EOSS in

weekdays

7000 / Approx 25%

Average Footfall during EOSS in

Weekends

10k / Approx 25%

Average Monthly sale for 10

months.

8 9 crores
12 12.7 crores

Average Monthly sale during EOSS

Entrance of the Store

Baggage Counter of the Store

Ground floor of the

Store

Bags and Sunglasses Section

First Floor of the

Store

Womens Western Wear Section

Second Floor of the

Store

Youth Wear Section

Third Floor of the

Store

Mens Formal, Casual, Accessories

Section

Fourth Floor of the

Store

Customer Service
Desk

Key Highlights of the Store

Key Performance Indicators

Average Customer Spend:

Sale for the day 28,33,497

No of converted customers - 892
Therefore ACS 3172/-

Source : Ankur Chopra (Marketing Head Central )

Key Performance Indicators

Sales and Gross Margin:
Sales for January 2016 8.76 crores/ Gross Margin 3,50,40,000/- (@ 40 % including In house
Brands & other)
Rent 95,00,000/ Gross Profit 2,55,40,000/ This profit is excluding all the expenditure of the store.

References
Future Group. (2014, March 31). Retail Businesses: Central. Retrieved from
Group.
Website: http://www.futuregroup.in/businesses/central-retail.html

Future

Future Lifestyle. (2012, June). About Us. Retrieved from Future Lifestyle.
Website: http://www.futurelifestyle.in/about-us.html
Future Lifestyle. (2014, August 20). Business Brands: Fashion Brands. Retrieved
Future Lifestyle.
Website: http://www.futurelifestyle.in/brandsbusiness.html#fashionbrands

from

Future Lifestyle. (2015, October). Business Overview: Fashion Retail. Retrieved

Future Lifestyle.
Website: http://www.futurelifestyle.in/business-overview.html#fashionretail

from