Page 49 - DMGT552_VISUAL_MERCHANDISING

Visual Merchandising

Notes 3. Community attitudes
4. Banking facilities
5. Existence of supporting stores
6. Local taxes and restrictions

7. Water supply
8. Personal and emotional factors
9. Historical issues
10. Traffic flow

Selection of the Exact Store: The selection of an exact store in a selected is the final step in store
location decision. A retailer’s selection of a particular store is determined by the following
factors:
1. Availability of funds
2. Cost of land development
3. Flexibility potential

4. Transport facilities
5. Local laws/bylaws
6. Local taxes, water and fire protection facilities
7. Means of communication

8. Outlook of local people
9. Postal facilities
10. Waste disposal provision

3.1.3 Develop a Location Plan

Developing the location plan requires a careful study of potential markets. Market assessment
begins by examining all regions or metropolitan areas, then choosing the one that appears to
offer the greatest potential. Such a process is known as market selection.
Choices must then be made within the selected region or city. An analysis of the different
subareas or trading areas, of a city is then conducted. Finally, separate site analyses and evaluations
must be made. At this stage, management assesses the cost of land or rents, construction costs,
traffic flow, etc. Note that each step in this process is a refinement of the previous one.

Figure 3.2: Location Plan
Market Analysis

Trading Area Analysis

Site Analysis

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