Site Selection

Three Types of location

• Isolated store
• Planned Shopping Center 
• Unplanned Business District

Isolated store

Freestanding retail outlet located either a highway or a street .

For example, Starbucks 

  Advantages                                                                                

 

No direct competition                                             

Low rental costs

Flexibility

Good for convenience stores

High visibility

Adaptable facilities

Easy parking

Excellent for store that generates own traffic

Disadvantages

Difficulty attracting customers

Travel distance

Lack of cumulative attraction for customers

High advertising expenses

No cost sharing for promotions

Possibly restrictive zoning laws

Unplanned Business District 

Central Business District(CBD) 

Secondary Business District(SBD)

Neighborhood Business District (NBD)

String

CBD

-Usually located around a geographic point at which all public transportation meet them    

For example KL Sentral , Suria KLCC

Advantages 

-Easy access 

-Wide assortment

  

Disadvantages

-private transport

-high rent

-potentially higher crime rates

SBD

-Provide one concept, smaller than CBD.

-major street intersection

-one department or variety store

-for example, Petaling Street or Jalan TAR e.g fashion concept.

 

NBD 

-smaller than SBD 

-satisfy convenience

-one supermarket

-residential area

-for example, Giant

String

-Located along street & highway 

-firstly unillegal and after that legal after become ,ND,SBD and CBD

-For example, Uptown, Direct selling Coway.

Planned Shopping Center

Advantages

Well-rounded assortments

Strong suburban population

One-stop, family shopping

Cost sharing of promotions

Transportation access

Pedestrian traffic

Disadvantages

Limited flexibility

Higher rent

Restricted product offerings in lease

Competition

Requirements for association memberships

Domination by anchor stores

Impact of store closings on affinities

The plan shopping center are the pedestrian traffic are high level, the proper pedestrian

traffic should include the age and gender that are youngster, the pedestrian interview that

are very actively shopoing and the they visit the stores frequently.

The vehicular traffic are important for the convenience stores, outlet in regional shopping

center, car washes , fast food franchises, suburban area with limited pedestrian traffic and

non destination store.

The parking consideration evaluate by the number and the quality. distance of spots from

stores, parking slot security at early morning and late evening hours, availability of

employee parking and price to charge customers for parking .

The amount of parking center.

Shopping center = 4-5 spaces per square feet gross floor space

Supermarket=10-15 spaces per 1000 square feet of gross floor space

Furniture stores=3-4 spaces per 1000 square feet of gross floor space