Customer 's Store Choice Decision

When examining competitive advantage, it is also important to consider the market and take into account the existing competition against larger firms.

As Aldi has already established itself as a large discount supermarket chain with over 10,000 stores in 18 different countries including Australia (2001), and holds a large market share in the grocery world due to its business culture and market leading initiatives. This report aims to provide the ALDI board of directors with:

It is crucial for a business to know where their customers come from in order to select the best location for the store. Choosing the best geographic area can help in the success of the business or the failure of the business. This is why Trader Joe’s has particular criteria when choosing new store locations. Trader Joe’s is aware who their target consumer is and utilizes the data they receive to place their locations in the areas that will benefit in the growth of the organization.

In a day of, “I want it now and I’m willing to pay for it,” a shopping center has to offer a variety of stores, and also have several options. The shoe shopper will go to the place with 5 shoe stores before they go to the place with only 1. They may not realize that of the 5 available shoe stores; only 1 is in their price range, but satisfying a wider variety of consumers will help the mall broaden the shopper’s experience. But it is important to remember that shoppers are price sensitive, so not only do you need a variety of stores offering a variety of products, but you also need to be able to provide a variety of price points so you don’t limit your shopper demographics.

STRATEGIC LOCATION: When it comes to retail industry the selection of location plays a very important role. Ex. Initially when Wal-Mart was set up by Sam Walton they mainly got success due to their location strategy. They had set up stores i.e. discount centres in rural and small town areas; other reason was strategic placement of distribution centres.

Second is place, the locations of the stores, and the hours in which the stores are open. This is where selective distribution comes into play. “Nordstrom has 157 stores in 27 states, but they plan to open 19 more by 2010, expanding into Boston, Ohio, and other untapped U.S. markets.” By limiting where Nordstrom’s are located, this allows them to maintain a superior product image, and charge a premium price for the products.

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.

As it relates to “place”, Eric Nordstrom, the company’s president visits each possible location before committing to opening a store in that location. He says that his feelings about the location matter almost as much as the demographics and statistics that are analyzed to find locations.

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.

I think this response varies dependent on the business that I am opening. For instance, if I was opening a clothing store for after-hour events (Happy Hour, clubbing, etc) I think it would be better to open a store near a lot of bars or local clubs versus opening my store near a mall. I think that when you open a business, you should open one near to where your business compliments other businesses, not always where your competition is. The only exception to where I would open my store near to where my competition exists is in the case of Walmart vs Target. In their case, although they are ultimately the same type of store, the customer experience is very different (price, quality, service,

The tenant structure of the shopping center is an important factor in ensuring rent is adequate to make the project viable. The fact that Philipp conceded the hypermarket could have a negative effect on the overriding success of the project. ECE strategy typically relied on these large self-service retail stores. Hypermarkets are very desirable to customers since the warehouse structure enable the stores to offer a wide variety of products (i.e. fresh food, beverages, home supplies, electronics, clothing, car accessories, garden furniture etc.) at discounted prices. This lack of a hypermarket must be offset by assurance and

When it comes to retail locations (in NYC), it would make sense to build in the highest foot traffic areas. I think that my current location is a perfect location for that. My location is located directly across from Penn Station on

It’s also time consuming for building establishment takes months or even year to finish. They need also to identify the best place for their retail stores.

Place – Place is also very important in the terms of business because before opening the business they should consider the location properly that are they targeting the proper market according to their business. Place must be easy accessible for customers, suppliers etc.

According to Lam (2012), the key elements of the shopping centre management include location, accessibility, visibility,