Important of Location Decision in Retailing

Reasons for this specific site are because of excellent road links for distribution and particularly customers, a good public transport system and land available for sale suitable for new store.

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.

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.

The company also should consider other factors in choosing the location of the plant including:

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.

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $185 in either case.

A boutiques location is also another very important factor. For instance if a boutique targeted market is young adults, yet they open their store in country sides, there will be less consumers walking

The position of the business is an integral component to its success as the location can either make or break the business.

The location of a business has a large impact of future sales and success. The potential location holds communities that are very close-knit and once loyalty is established sales can be maintained. The personal relationships with the customers are highly important in this area.

Population is a factor because the business needs to choose the right place where there are thousands of people, this would help the business to help raise their profits and increase their sales. The firm needs to choose the right location so that the store is visible for the customers to see it. Aldi needs to be located where they have easy access to their raw materials, so their goods are preserved efficiently while being transported to their firm. One of the most important factor is public links; these enable customers to have flexibility to the store as not all people are able to

Inditex ensures that its fashion is fast through its supply chain efforts. They have created new methods to enable store managers to order and display merchandise faster and added cargo routes for shipping goods. The company ships clothing straight from the factory to stores and makes two-thirds of its goods in Spain and nearby countries, compared to most competitors who manufacture most of their clothing in Asia. Inditex has their sales managers monitoring computers, which are reporting sales at every store around the world. When a garment does well or fails, they are able to quickly tell designers if they need to come up with new ideas. They also have generated

Place: Another important when choosing a financial institution is its location and other access points.

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.

The company has to decide between the two locations based on their virtues, availability and higher margin of profit.

Locations for outsourcing jobs is very important as companies need to decide what is going to be the cheapest option but also the most beneficial in terms of maintaining their remaining clients and customers, there tends to be quite high volume complaints when it comes to outsourcing jobs, problems can arise often due to language barriers, so choosing the best location