Case 13 Choosing a Store Location for a Boutique

Urban Outfitters is a popular clothing and accessory store that was founded in 1970, and generates success from the type of merchandise it retails, as well as through the contemporary culture and ethos that it promotes to its customers. The store has stated that it is targeted towards a specific audience that ranges from eighteen to thirty years old, who are well “educated, [and] urban-minded” (“Urban Outfitters”). Urban Outfitters offers a specific shopping experience that is unique to its store, because it focuses on a well-defined audience that is attracted by its modern environment and trendy clothes. Many individuals are unconsciously lured into the store first by the placement of the store itself, then by what the consumer can see in the front windows, and lastly by the specific and well thought out placement of the store’s merchandise. It is evident that the theories regarding retail geography defined by Paco Underhill, including the stores location, the decompression zone, the invariant right, destination items, the

The store will provide welcoming, attentive and efficient service. The company will provide a productive work environment, rewards for achievement and opportunities to develop.

4) Location- Decisions about where to locate a store are critical to any retailer’s success. Location decisions are particularly important because of their high cost, long-term commitment and impact on customer patronage. Choosing a particular location type involves evaluating a series of trade-offs. These trade-offs generally include the occupancy cost of location, the pedestrian and vehicle customer traffic associated with the location, the restrictions placed on the store operations by the property managers, and the convince of the location for customers.

According, the United State Census Bureau, the U.S. population is increasing, every eight seconds a child is born. With the population increasing sort of rapidly the construction of new neighborhoods it is going to be necessary to house these prospering families. Also, the establishment of stores are going to be needed. Therefore, neighborhood stores are going to become available and malls too, but they both are going to vary in certain aspects. Neighborhood stores are stores that provides accommodations to the locals. Malls, on the other hand, are large buildings made of multiple competitive retails stores. Nevertheless, neighborhood stores and malls seem very similar, but when looking at their square footages, remoteness from home, and marketability, they are quite different.

There was a time Laredo’s sister city was very dangerous to be at or even near because of the surprise shootings that sometimes occurred even across countries. This mall, in present time, is still standing but not in use. There are rumors of getting it running again. There have also been leaked blue prints of the remodeling it will undergo as well as the rebuilding of the whole downtown area. Laredo’s downtown area is not one like Austin’s or San Antonio’s. It’s different and not very appealing. Slowly, the area is starting to gain its’ people

The Hudson’s Bay Company is higher end department store that offers high quality items. In Winnipeg, there are 3 locations; one in St. Vital which is known for their middle class shoppers. The second location is the Downtown location which is popular among the downtown workers who shop during their lunch break or after their work day is over. The downtown location was the largest location in Winnipeg, over the past few years, they have begun to diminution the size on their store, slowing decreasing the amount of floors they occupied. The third location is the Polo Park location which is located in an upper class shopping center. All of the three locations serve to a slightly different target market. The location that this paper will focus on is the Polo Park Hudson’s Bay. Polo Park Hudson’s Bay is located in an upper scale shopping mall. The shopping mall includes many upscale shopping stores. Polo Park Hudson’s Bay target is female shoppers with higher incomes. “The majority of our shoppers are females in who live in the River Heights area.”

Due to decay, the city’s downtown area is currently experiencing business loss. Retailers surmise that the major contributing factors are pedestrian safety and aesthetics. The primary issue facing the city, in line with its goals, is economic development and the creation of a “vibrant downtown” which will stimulate retail business activity. Retailers are requesting changes to the aesthetics including adding brick sidewalks and planting areas.

Suburban shopping malls are malls where with a single location shoppers can visit more over hundreds shops all of different kinds, i.e. shoppers can eat, watch movies, dine and walk. Most Americans could hung out here all the entire day and feel much uplifted in spirit by their experience. Suburban regional malls were designed to be a substitute or even a replacement for a city central business district. In 50s such malls were small but today it stands out to be a large malls that can be categorized into eight types, include; Neighborhood centers, community centers, regional centers, superregional centers, fashion/ specialty centers, power centers, theme/

The obvious concern regarding the Whalen Court project is the large initial investment required to get it off the ground. Of this cost, the most pressing financial concern is the requirement of leasing the building as opposed to building and owning its own store. As a result, our measures of profitability are not as attractive due to the high costs of doing business in an urban environment. This is reflected in how it measures up to the prototype Target store. Although the sales generated absolutely crush the prototype sales, the total net investment exceeds that of the prototype by $90

Rue 21 is one of the many retailers that are geared towards teens, however what set them apart from the rest is their affordability. This company strives to keep all of its merchandise under 35 dollars. Rue 21 has locations in various strip malls with 52 percent, regional mall 31 percent and outlet centers 17 there are pros and cons that affect the company for each of them (Berman, 2009). Having this store in a strip center can be a really great thing for consumers put not such a positive thing for the company as a whole. The positive to a strip mall is that it is easily accessible for customers to find and shop at the location. Strip malls have less congestion when it comes to parking, which makes for a more pleasurable for shoppers like

Opening a new retail business can be daunting to say the least. The entrepreneur accepts full responsibility for development and management, including the risks and rewards. Many businesses do not survive to see their fifth anniversary since business owners fail to develop an effective business plan (Haag, 2013). The key to the success of a business is writing a business plan down first, when preparing to open a business, it emphases on the main areas of concern and will be the core support of a successful business. There are many obligations that must addressed before opening up to the general public and this paper will discuss the steps that need to be taken from the beginning until the grand opening of a fictional retail store, Savvy Chic Apparel. These obligations and steps will include financing options, location strategies, merchandising plans, staff recruitment, preliminary training, product selection, store management considerations and advertising media budgets.

Since Hutch Corporations is targeting the lower-middle, middle-income range and no specific ethnic group, the two possible locations Dalton and Hinesville seem to be the good match for a new store according to Exhibit 2. Hutch´s target market of women between the ages 18 and 40 years, fits very good to the data that is given about these two cities. As you can see the biggest shares of inhabitants is from the age of 21 to 44. Even the relatively low percentage of women, living in these cities does not

The most feasible solution to Colin's situation is opening up the business downtown at the Great Eastern Building. This location produces a higher net income and a lower break even point than the mall. Although the net income starts out quite low, once the business is

Demographics point to a decidedly female market with wide aged range 25-54, they could be the professional or wives of professional. Living in city or suburban area due to the store placement will be near the major cities. The income should be in upper middle class. The target market could be healthy conscious and high quality expectation. Conclusion of demographic detail as followed.

The two options have their own pros and con which as stated as follows 1) KIMBERLY STREET: Two acres of land costing $50,000.  Situated near to the main plant.  Surplus labor available.  Resale value of the land is high.  Rate of Electricity, gas and water is cheap.  Union of labors.