Retail Location

The retail location are the macro environment and the site locations are the micro environment . In this part i will tell you about the retail location .

Retail Location

Shopping Centers 

• Strip shopping centers
• Shopping Malls

City or town locations

• Inner City 
• Main Street 

Free standing sites 

Other location opportunities

Types of strip shopping centers 

   There are traditional and power centers. For the traditional the example is the convenience store such as 7-Eleven stores.

The power centers are the one brand in one premise . For example Ikea.

Types of shopping malls

Regional centers - Only retail outlet , example Sogo , Sunway putra

Superregional centers- The big more that offer more retail outlet , the example such as One Utama , IOI.

Lifestyles Centers- This types more concentrated more on the lifestyle, For example, lifestyle for muslimah that concentrated in one place . For example Giomall.

Fashion and Specialty Centers - Its is more depend on the specialty , as for example we can take Plaza Low Yat as a specialty centers for looking for a gadjet and so on.

Outlet Centers- The outlet centers we can take example that is JPO .

 

Theme and Festival Centers- The retailer that have a theme in their places. For example, Sunway Pyramid that have a Moroccan theme in the places.

Merchandise Kiosk 

The merchandise kiosk is the small kiosk in the mall .

The problem that are facing regional malls.

The competition from alternative that is more convenient location that in the malls. The malls also fashion oriented that is the retailer having problem facing this. Next the aging , the younger generation doesn't go to the malls anymore . For example, Pertama Kompleks that are very dull looking. The malls management have to facing the demographic shift nowadays because there shouldn't not offer buying and selling only , but the must offer more variety in the place such as have indoor theme park .

Matching location to retail strategy 

Department stores- regional mall

Specialty-Central Business District

Category specialist-Power centers

Grocery stores- strip shopping centers

Drug stores-stand alone

Types of leases

Percentage -5% of the month 

Fixed - Rate - RM 5000 per month

Percentage leases- lease based on a percentage of sales

Retailer also typically pay a maintenance fee based on a percentage of their square footage of leased space. For example - The cleaner, technical and guard.

Most of the mall used some form of percentage lease.

Variations of percentage leases 

Percentage lease with specified maximum- percentage of sales up to a maximum amount.

Sales                         Rental-sliding scale

10-20k                       15%

20-30k                       20%

30k-above                 30% - maximum lease

Rewards retailer performance by allowing retailer to hold rent constant above a certain level of sales

Percentage lease with a specified minimum- retailer must pay a minimum rent no matter how low sales are. Pay 15% or RM5000 per month based on the agreement ofd the tenant.

Sliding scale, the percentage of sales as rent decreases as sales go up.

Fixed rate- used by community and neighborhood centers ,the retailer pay a fixed amount per month over the life of the lease. Not popular as the percentage lease. Rent increase by a fixed amount over a specified period of time.

For example, 1year RM5K

                        After 5 year -6k increases RM1k.