Retailing - MSSTATE - Emily Stokes

The highest % of retail sales are done through ___

stores

___ is important for retailers

location

___ is one of the most influential considerations for a consumer and can be used to develop sustainable competitive advantage

location

the 2 types of location are ___ and ___

planned, unplanned

___ locations do not have centralized management to determine what stores will be in a development

unplanned

in a(n) ___ location, the shopping center and/or manager makes and enforces policies that govern store operations

planned

for ___ managers are responsible for maintaining common facilities

common area maintenance (CAM)

the total floor area designed for the retailer's occupancy is ___

gross leasable area (GLA)

gross leasable area =

total floor space - space not usable to tenants

when selecting location, retailers consider what 5 things?

size of the trade area, occupancy cost, pedestrian and vehicle customer traffic, restrictions for the area, convenience of location for customers

a freestanding site is a(n) ___ location

unplanned

advantages of a freestanding site include:

convenience, high traffic and visibility, modest occupancy costs, fewer restrictions

disadvantages of a freestanding site include:

you have to be THE specific destination

___ are freestanding sires that are located on the outskirts of a shopping center

outparcels

urban locations are a(n) ___ location

unplanned

a ___ draws many people in during business hours, but they are slow in the evenings and on weekends

central business district (CBD)

___ are experiencing urban decay and are in food deserts

inner cities

___ happens when people tear down the city to revamp it and make it better

gentrification

main street stores are a type of ___ location

unplanned

___ is a type of traditional shopping area that is typically downtown in smaller towns; they are secondary shopping areas in large cities and suburbs

main street

___ have experienced a decay over the past 30 years and do not draw as many customers in as the central business district

main streets

a shopping center is a type of ___ location

planned

___ are groups of retail and commercial establishments that are seen as a single property

shopping centers

the ___ stores are the "destination stores" that are typically national brands

anchor

___ usually have attached rows of open-air stores with parking typically in front of the stores, have convenient locations, relatively low occupancy costs, but limited trade areas

convenience, neighborhood, and community shopping centers

___ consist of a collection of big-box retail stores with unconnected anchor stores, low occupancy costs, modest consumer convenience, and are located near enclosed shopping malls

power centers

___ have a large trade area, attract many customers, have consistent management levels, and do not have to worry about the weather being a factor; they do have high occupancy costs with intense competition

enclosed shopping malls

there are ___ retail stores in the mall of america

520

___ resemble main streets in small towns that are designed to have good ambiance and amenities attractive to specialty retailers

lifestyle centers

"where you sleep, eat, and play" refers to ___

lifestyle centers or mixed-use developments

___ contain mostly manufacturers' and retailers' store outlets in remote locations where tourism provides a major source of traffic

outlet centers

___ are often viewed as tourist traps and are usually avoided by locals

theme/festival centers

___ combines several different factors into 1 complex

mixed-use development (MXD)

___ are omnicenters that combine enclosed malls, lifestyle centers, and power centers; encourages consumers to cross-stop; and appeals to time-scarce customers

larger, multi-format developments

pop-up shops, stores-within-a-store, and kiosks are ___ locations

nontraditional

nontraditional locations can be ___ for both stores

mutually beneficial

___ locations are good opportunities to generate income in a "vacant" by people who use minimal effort to get products

nontraditional

in ___ shopping, customers are more involved in the purchase decision

comparison

when consumers know what they want and will not accept substitutes, they are ___ shopping

specialty

a ___ makes retail offering unique

convenient location

___ creates congestion, air pollution, concentrated poverty, and racial/economic segregation

urban sprawl

___ drive local retailers out of business, do not provide a living wage, do not offer benefits, and achieve low prices by manufacturing outside of the US

big-box retailers

___ regulates land use to prevent interference with existing use by residents or businesses

xoning

the 5 categories of activities are:

residential, commercial, mixed residential and commercial, industrial, and special

a core urban area with 50,000+ inhabitants is called ___

metropolitan statistical area

___ are somewhat removed from larger cities, often by up to 100 miles

micropolitan statistical areas

there are 4 factors that affect the attractiveness of an area for locating stores, what are they?

economic conditions, competition, strategic fir, cost of operating stores

___ are man-made barriers

artificial barriers

___ within a shopping center affects both sales and occupancy costs

locations

___ are closest to the supermarket and are more expensive because of the high foot traffic

strip shopping centers

retailers who sell comparison shopping goods and are located close to the department store anchors are called

enclosed shopping malls

the ___ is 50-70% of customers

primary trading area

the ___ is 20-30% of a store's sales

secondary trading area

the ___ trading area have customers come from widely dispersed areas based on time or miles traveled

tertiary trading area or fringe trading area

___ is the process of locating the residences of customers for a store on a map and displaying their positions relative to the store location

customer spotting

sources of information about trade areas can come from the ___ or ___

the census, geographic information system

a ___ is a collection of adjacent census blocks that contain between 300 and 3,000 people that is the smallest unit for the sample data

block group

the ___ is used to store, retrieve, map, and analyze geographic data based on coordinates

geographic information system (GIS)

the ___ classifies all US residential neighborhoods into 67 distinctive segments based on demographic and socioeconomic characteristics

tapestry segmentation

the ___ compares local average expenditures to the national average; an ___ of 100 is average

spending potential index

___ factors that affect existing stores will have the same impact on stores being considered for new sites

regression analysis

the ___ is used by small chains; the retailer describes sites and trade area for a successful store and tries to find a site that is similar

analog approach

using the analog approach to evaluate potential sites includes ___, ___, ___, and ___

conducting a competitive analysis, defining the present trade value, analyzing trade area characteristics, matching characteristics of present trade area with potential sites

the 2 types of leases are ___ and ___

percentage leases, fixed-rate leases

___ do not change month-to-month

fixed-rate leases

___ have a specified maximum and minimum with a sliding scale lease

percentage leases

a ___ says that there needs to be a certain % of the center to be leased to specific stores

contingency clause

a ___ limits a center from leasing to certain kinds of tenants

prohibited-use clause

a ___ prohibits a center from leasing to tenants that sell competing products

exclusive-use clause

a core urban area with 50,000 or more inhabitants is a ___

metropolitan statistical area

a ___ is somewhat removed from larger cities, often by up to 100 miles

micropolitan statistical area

4 factors affecting the attractiveness of an area for locating stores are

economic conditions, competition, strategic fit, cost of operating stores

based on the principle of ___, stores selling similar merchandise to similar target markets should be located in close proximity to one another to increase the appeal of the locations

cumulative attraction

utilitarian benefits are ___ and hedonic benefits are ___

needs, wants

the ___ requires retailers to provide "reasonable access" to merchandise and services

americans with disabilities act (ADA)

a ___ layout has parallel aisles with merchandise on both sides of the aisle; it is for customers who want utilitarian benefits that the store offers; consumers can locate the products easily and purchase them quickly

grid

the ___ layout has major aisle guides that take the traffic through different departments to encourage unplanned purchases

racetrack/loop

the ___ layout contains fixtures and aisles that are arrange asymmetrically with an intimate, relaxed environment

free-form/boutique)

feature areas in a layout include ___

freestanding displays, mannequins, end caps, promotional aisles, walls, dressing rooms, and cash wraps

___ are the areas near the checkout stations to create impulse buys

cash wraps

___ take 3 seconds to capture your attention

windows

in a(n) ___, there is 10 feet of a decompression zone that uses ___

entrance, 5 senses

___ is the sales per square/linear foot

space productivity

the ___ is the 1st impression of the store's offering

strike zone

___ include contradictory placements in a store (diapers next to wine)

category adjacencies

___ include virtual-store simulations, videotapes of consumers, and spatial recognition systems

planograms

stores ___ from less rent, fewer employees, lower payroll costs, and access gain to new markets

benefit

___ displays in stores generate more sales with the colors of the items being ___ and reading ___

vertical, vertical, left to right

"stock it high and let it fly"

tonnage merchandising

___ design environment by stimulation of the 5 senses

atmospherics

the impact of the environment depends on shopping goals; task completion is ___ and recreation is ___

utilitarian, hedonic

what are the 4 parts to a buying team

buyer, BDA, planner, IA/RA

the ___ makes key merchandising decisions

buyer

the ___ is the buyer's assistant

BDA

the ___ is the buyer's right hand man; the buyer and the ___ work hand-in-hand

planner

the ___ pushes the right quantity to the right location at the right time

IA/RA

the category captain helps manage a category for retailers by ___, ___, and ___

increasing profits, creating antitrust considerations, making merchandise management tasks easier for the retailer

the GMROI is the ___

gross margin return on investment

the GMROI is achieved with ___ and ___

gross margin, inventory turnover

GMROI =

gross margin / average inventory at cost