2. Unplanned locations - do not have any centralized management that determines what stores will be in a
development, where the specific stores will be located, or how they will be operated.
Planned locations - a shopping center developer and/or manager makes and enforces policies that govern store
operations, such as the hours that a store must be open.
TYPES OF RETAIL LOCATIONS
3. UNPLANNED LOCATIONS
Freestanding sites- are retail locations for an individual, isolated store unconnected to other stores; however, they
might be near other freestanding stores or near a shopping center. The advantages of freestanding locations are their
convenience for customers (easy access and parking); high vehicular traffic and visibility to attract customers driving by.
The three types of unplanned retail locations are freestanding sites, urban locations, and Main Street locations.
Urban Locations- Urban areas offer two main types of locations: the central business district and inner city. Across
these areas, retailers are revising their offerings to reflect the restrictions associated with these locations.
Main Street- refers to the traditional downtown shopping area in smaller towns and secondary shopping areas in large
cities and their suburbs.
*Central Business District-The central business district (CBD) is the traditional downtown financial and business area in
a city or town. Due to its daily activity, it draws many people and employees into the area during business hours.
Ex. Bonifacio Global City (BGC) is the prime business center of Taguig and is one of the fast-evolving business districts in
the country. Developed by the country's leading developer, Ayala Land.
*Inner city is a low-income residential area within a large city. Empty lots, buildings, and condemned houses attract
criminal activity, making living in the inner city relatively dangerous.
4. SHOPPING CENTERS AND PLANNED RETAIL LOCATIONS
Shopping center- is a group of retail and other commercial establishments that are planned, developed, owned, and
managed as a single property.
Power centers- are shopping centers that consist primarily of collections of big-box retail stores, such as full-line
discount stores (Target), off-price stores (Marshalls), warehouse clubs (Costco), and category specialists (Lowe’s,
Staples, Michaels, Barnes & Noble.
Lifestyle centers- are shopping centers that have an open-air configuration of specialty stores, entertainment, and
restaurants, with design ambience and amenities such as fountains and street furniture.
Outlet centers- are shopping centers that contain mostly manufacturers’ and retailers’ outlet stores. Some outlet
centers have a strong entertainment component, including movie theaters and restaurants to keep customers on the
premises longer. For example, the Outlets at Orange, in Orange, California, has a multiplex theater, with an IMAX
movie theater; a children’s play area; and Thrill It Fun Center.
Theme/festival centers- a unifying theme generally is reflected in each individual store, both in their architecture
and the merchandise they sell. Theme/festival centers are a relatively new type of shopping center.
5. NONTRADITONAL LOCATIONS
Pop-up stores- are stores in temporary locations that focus on new products or a limited group of
products. These “stores” have been around for centuries as individuals sold merchandise on city streets
and at festivals or concerts, such as the Newport Jazz Festival, weekend craft fairs, or farmers’ markets.
Store-within-a-store locations involve an agreement in which a retailer rents a part of the retail space in
a store operated by another independent retailer. The host retailer basically “sublets” the space to the
store-within retailer.
Merchandise kiosks- are small selling spaces, typically located in the walkways of enclosed malls,
airports, college campuses, or office building lobbies. Some are staffed and resemble a miniature store
or cart that could be easily moved.
6. LOCATION AND RETAIL STRATEGY
Convenience Shopping- When consumers are engaged in convenience shopping situations, they are primarily concerned with minimizing their effort to
get the product or service they want. They are relatively insensitive to price and indifferent about which brands to buy. Thus, they don’t spend much time
evaluating different brands or retailers; they simply want to make the purchase as quickly and easily as possible.
Comparison Shopping- Consumers involved in comparison shopping situations are more involved in the purchase decision. They have a general idea
about the type of product or service they want, but they do not have a well-developed preference for a brand or model. Because the purchase decisions
are more important to them, they seek information and are willing to expend effort to compare alternatives. Consumers typically engage in this type of
shopping behavior when buying furniture, appliances, apparel, consumer electronics, and hand tools.
Specialty Shopping- when consumers go specialty shopping, they know what they want and will not accept a substitute. They are brand and/or retailer
loyal and will pay a premium or expend extra effort, if necessary, to get exactly what they want.
Density of Target Market- A second, but closely related, factor that affects the retailer’s choice of location type is the density of the retailer’s target
market in relation to the location. A good location has many people in the target market who are drawn to it.
Uniqueness of Retail Offering Finally, the convenience of their locations is less important for retailers with unique, differentiated offerings than for
retailers with an offering similar to other retailers. For example, Bass Pro Shops stores provide a unique merchandise assortment and store atmosphere.
Customers will travel to wherever the store is located, and its location will become a destination.
Examples of convenience shopping situations are getting a cup of coffee during a work break, buying gas for a car, or buying milk for breakfast in the
morning.
Examples of these shopping occasions include buying organic vegetables, a luxury automobile, or a high-end road or mountain bike. The retailers they
patronize when specialty shopping also are destination stores.
