BMGT353 Chapter 7 - BMGT353 Chapter 7 Trade area the...

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BMGT353 Chapter 7 Trade area: the geographic area that encompasses most of the customers who would patronize a specific retail site Retailers have 3 basic types of locations to choose from: Freestanding: retail locations for an individual, isolated store unconnected to other retailers; however, they might be near other freestanding retailers, a shopping center, or in the case of a kiosk, inside an office building or shopping center. o Advantages: convenience for customers (easy access and parking), high vehicular traffic and visibility to attract those customers driving by; modest occupancy costs; and fewer restrictions on signs, hours, or merchandise, typically imposed in shopping centers o Outparcels: stores that are not connected to other stores in a shopping center but are located on the premises, typically in a parking area. Enable retailers to have a drive-through window, dedicated parking, and clear visibility from the street o Disadvantage: limited trade area when there are no other nearby retailers to attract customers; higher occupancy costs than strip centers; generally appear in areas with little pedestrian traffic, limiting the number of customers who might drop in because they are walking by o Merchandise Kiosks: small selling spaces, typically located in the walkways of enclosed malls, airports, train stations, or office building lobbies City or town business district o Urban locations lower occupancy costs and locations in central business districts often have high pedestrian traffic o Vehicular traffic is limited due to congestion in urban areas, and parking problems reduce consumer convenience o Gentrification: the renewal and rebuilding of office, housing, and retailers in deteriorating areas-coupled with an influx of more affluent people that displaces the former poorer residents o Three types of urban locations : Central Business Districts: the traditional downtown business area in a city or town Hub for public transportation and a high level of pedestrian traffic Large number of residents living in the area Main Streets: the traditional shopping area in smaller towns or a secondary business district in a suburb or within a larger city Share most characteristics with CBDs, but they have lower occupancy costs because they
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