Page 20 - DMGT553_RETAIL_STORE_MANAGEMENT

Unit 1: Introduction: An Overview of Retail Operations

Planned Shopping Location: These types of locations are deliberately designed for retail business. Notes
Planned shopping centre may be categorized as shopping mall or retail part etc. These have
advantage of consistent image for the shopping centre.
Unplanned Shopping Location: Contrary to planned location, unplanned shopping location is
characterized by fragmented ownership. It has evolved in a gradual piecemeal manner where
two or more retail stores locate together on individual considerations. We may find two or
three or more stores for same merchandise.

Nature of Metro Development: Because of automobile-based inter-urban dispersal, the city has
evolved into a restructured form called multi-centred metropolis. Classical models cannot
accommodate this new reality easily. The rapid spread of urban India owes much to the nature
of the radial and circumferential road network, which results in near equal levels of convergence
time across the metropolitan area, destroying the region wide advantage of the CBD. Low
housing interest rates reinforced the trend towards single-family housing in the suburbs. Intercity
neighbourhood redevelopment involves gentrification – property upgrading by high income
settlers that frequently results in the displacement of low-income residents. Jobs are moving out
with modern technology and development, and so are shopping centres and entertainment. The
need for the city, as far as the middle class is concerned, has diminished. Affordable housing is
a major problem in today’s modern cities, and planned public housing projects have not solved
big city problems. The inner city is home to the metropolitan disadvantaged and includes a few
specialised services, where suburban and satellite cities house the affluent and support a range
of services that were previously city-bound. Local and regional planners increasingly support
the notion of increasing the supply of housing in job-rich areas, and the quantity of jobs in
housing rich areas. The concept is jobs/housing balance. The suburbs create most new
employment opportunities matched to the work skills of inner city residents. This is known as
the spatial mismatch theory. Thus, the poor are faced with the problem of either finding work in
a stagnating industrial area, the inner city, or commuting longer distances to keep up with the
dispersing job market through reverse commuting. This also has an influence on the location of
the retail outlets. The nature of the target segment of the retail outlet therefore determines the
location of the outlet.

Lab Exercise Go to website http://delhimetrorail.info/ and study its route detail with
corresponding fair for a specific distance coverage.

Locational patterns of cities include: Transportation cities aligned along transportation routes
and at junctions of different types of transportation; specialised function centres that develop
around a localised physical resource; uniform pattern of centres, referred to as central places that
exchange goods and services with their hinterland. Central-place theory emphasises that cities
perform extensive services for their hinterland. Business conducted totally within the hinterland
is called settlement-forming trade. Activity that is directed to outside markets is called settlement-
building trade. Business conducted with residents of the centre is called settlement-serving
trade. It should be clear, what is the nature of the store that we have, in order to locate the store
accordingly.
Development of Central Places: Central places serve large areas around the city. These areas are
called hinterlands, tributary areas, trade or market areas, or urban fields. Areas of Dominant
Influence (ADI) also called daily urban systems, is that area that describes the extent of the social,
economic, and cultural ties between a city and its tributary region. Newspaper circulation and
commuting are conceptually good indicators. People in the tributary area, look to the regional
newspaper for information on sales and social events or to the city as an employment location.
A good measure for locating outlets is to use this movement of people.

LOVELY PROFESSIONAL UNIVERSITY 15