To successfully choose the location of a retail store, you need to know the main types of retail spaces in the city. Economists have different approaches to the classification of types of retail spaces, distinguishing from three to five groups.
For example, one of the classifications includes five types:
central business district;
peripheral shopping center;
the main shopping artery;
shopping street of local importance;
separate groups of stores.
Traditionally, there has been an idea that the approach of commercial enterprises to the central districts is the most profitable for the seller, since at the same time the power and intensity of the customer flow increases. Meanwhile, the latest experience in the organization of retail trade and the placement of retail enterprises also provides very convincing examples in favor of the advantages of a different approach to the placement of retail trade enterprises: on the outskirts, at a considerable distance from both the city center and the place of residence of buyers.
Thus, we can say that from the point of view of the placement of retail trade enterprises, two approaches can be distinguished:
attraction to the central areas of the city;
placement of the largest commercial enterprises on the outskirts.
The first approach was called “flow” trading, the second — “traffic” type trading.
Distinctive features of the traffic trade are the location of discounters in hypermarkets on the periphery of the city. Mandatory conditions are:
availability of well-organized parking: “There is no business without parking”;
the widest product range, when you can buy everything in one place;
low prices, which is possible due to the implementation of the scale effect of trade.
Another approach provides for three main types of retail spaces:
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Business (shopping) center.
Specialized functional territory.
1. Shopping centers in terms of layout, location and appearance differ significantly from other areas of concentration of trade, which are located in the business part of the city and on its periphery. A modern shopping center is initially planned and is being built taking into account the fact that a large number of trading enterprises will be located on its territory, which will offer the widest range of goods, services and be adjacent to each other.
The place for its construction is usually chosen by the developer in order to ensure a constant influx of buyers from all over the area. Any shopping center is equipped with a convenient parking for cars, the size of which depends on the size of its retail space.
It should be emphasized that shopping centers are distinguished by a wide range of services provided. This applies not only to parking a car, but also includes the opportunity to visit an exhibition, attend a fashion show, listen to a lecture on an interesting topic. This also includes luggage storage services, free use of the phone. There are a large number of catering establishments on the territory.
Economic calculations when choosing a shopping center as the location of an enterprise involve taking into account several groups of expenses: current and one-time.
The first includes rent. The principles of its establishment are different: as a percentage of total sales; as a fixed value per 1 sq.m of leased area, etc. Of the total sales, the amount of rent is 5-10%. The level of rent depends on many factors: the nature, location and reputation of the center, the type of goods sold. The current costs may also include annual payments for the general needs of the shopping center, sometimes electricity and heat supply fees.
The second group — one—time costs – includes one-time investments for the purchase of commercial equipment, electrical and heating equipment, etc.
2. The next type of retail spaces are trade arteries, which are also an advantageous location for retail enterprises. Depending on the importance of trade arteries and the intensity of consumer flows, there are such types of them as the main trade artery, trade arteries along highways, and local trade arteries.
A special kind of retail spaces are specialized shopping centers (areas). As a rule, there is no single landlord, there is a greater number of independent merchants, a significant accumulation of service and food enterprises. Buyers incur significantly lower consumption costs.
Let’s consider additional factors determining the choice of the location of a retail trade enterprise. Along with the specialization and size of the trading enterprise, the choice of its location is influenced by:
the zone of attraction, or the radius of the store and its market;
potential buyers — their number, age composition, income level, social structure and its features (campus, military unit, enterprises with female employees);
competitors — their number, size, features;
traffic and pedestrian flows;
availability of access roads and parking lots;
criminogenic state in the zone of attraction, etc.
Another important factor in the placement of trading enterprises are the types of product groups. Usually goods are divided into three main groups: everyday goods, large expensive items and luxury items.
Everyday goods are cheap, regularly purchased goods, characterized by high demand stability, which are not difficult to sell. They are included in the mandatory consumer basket, are bought, as a rule, out of habit and are sold in numerous retail outlets. As an example, we can name milk, bread and bakery products, sweets, cigarettes.
In Russia, the composition of food products included in the so-called consumer basket, which includes the most significant part of everyday goods, has been determined. These include: bread; millet; vermicelli; potatoes; cabbage; onions; apples; carrots; sugar; beef; sausage; milk; sour cream; animal oil; cheese; eggs; vegetable oil; flour; cottage cheese; margarine; fish; poultry.
Shops selling expensive goods and luxury goods are better placed in central areas, where buyers will go more willingly than for everyday goods or medicines.