CHAPTER 6: SITE LOCATION

Hi,

This chapter will be short. It will focus on site selection so happy reading!!

There are three types of location such as an isolated store, planned shopping center, and unplanned business district.

There are advantages and disadvantages for having isolated stores. For advantages, there are no direct competition, low rental costs, flexibility, good for convenience stores and others .There is also disadvantages for having isolated such as difficulty attracting customers, travel distance, high advertising expenses and some others.

99 Speedmart was a mini market that concentrated around neighborhood area.

For planned shopping centers as well, there are advantages for is well-rounded assortments, strong suburban population, one-stop and family shopping and transportation access. For disadvantages, it was limited flexibility, higher rental, and stiff competition.

Pros of ownership versus leasing are freedom over concern with lease renewal o though lease renewal negotiations with the property owner, ability to write off depreciation, possible capital appreciation from increased value of real estate and control over property maintenance.

Cons of ownership versus leasing are difficulty in securing locations in the neighborhood, community, and regional shopping centers, as tied up in real estate could be used for retail expansion, inventory, store renovation, and real estate activity can divert attention away from  retail activities.

Six terms of occupancy considerations were ownership versus leasing, type of lease, operations and maintenance costs, taxes, zoning restrictions and voluntary regulations.

As the conclusion, chapter 6 is similar to chapter 5 which is focused on location and site selection. It will help retailers to emphasize site selection as an important thing to open a store.

Finish of chapter 6, I will meet you guys on next chapter!!!