Page 19 - DMGT553_RETAIL_STORE_MANAGEMENT

Retail Store Management

Notes The selection of particular area is affected by the following factors:
1. Direction of development of the city
2. Comparative strength of competitors in that area

3. Planning regulations
4. Availability of easy routes
Factors affecting specific sites include:

1. The relationship of the site to the main area
2. Parking facility
3. Cost of the site
4. The existence of similar or complementary retailers

5. Suitability for the particular business
Standards for Location and Layout of Stores: Following are the desired standards
1. Location of the stores should be carefully decided and planned so as to ensure maximum
efficiency.
2. The best location of stores is one that minimizes total handling costs and other cost related
to stores operation and at the same time provides the needed protection for stored items
and materials.
3. Stores location depends upon the nature and value of the items to be stored and the
frequency with which the items are received and issued.
4. In general stores are located close to the points of use. Raw materials are stored near the
first operation in process, materials close to the next operation, finished goods near the
shipping area and tools and supplies in a location central to the personnel and equipment
served.
5. All departments should have easy access to the stores and especially those which require
heavy and bulky materials should have stores located nearby.
6. In big industries, having many departments stores, department possibly cannot be situated
where it is convenient to deliver materials to all departments and at the same time near
the receiving department: thus it is convenient to deliver materials to all departments and
at the same time be near the receiving department thus it becomes often necessary to set
up sub stores conveniently situated to serve different departments.

7. In decentralized stores systems each section of the industry has separate stores attached
with it, whereas in centralized stores system the main store located centrally fulfils the
needs for each and every department.

1.3.2 Types of Retail Location

A retailer has to make a decision about the best type of location for its decision. Major classification
of retail location is as follows:

Solus Location: It is also known as freestanding location. If there is no single retail outlet in the
vicinity, it is called solus location. Retailers that select solus location want to avoid competition.
Rent is also low at this type of location.

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