Choosing Retail Locations for Shopping Malls in India
EXECUTIVE SUMMARY
Background
Store location and real estate markets are two most important areas of concern for a retailer by the virtue of the fact that real estate is the largest fixed investment for a retailer. For a retailer, being at the right place at the right time facilitates the development of sustainable competitive advantage. The decline in real estate prices in last 4-5 years has boosted the morale of the retailers. Because of this there has also been an increase in the supply of property for retail locations.
For every kind of a retailing format there is a series of tradeoffs to be evaluated, in terms of costs and value of site while selecting the location.
The location of the mall has become one of the decisive aspects of the retailing business. The location of the shopping mall spells its success or failure. A mall in a remote area would suffer from weak sales, poor cash flow and increased marketing and advertising expenses. Whereas, put the mall in a good location and the business will thrive with all the expectations of the retailer surpassed
The aim of this paper is to discuss in detail various aspects of real estate in the retailing industry with a specific objective of discussing all the aspects that are taken into consideration while selecting a location for shopping malls in India.
In order to prioritize the factors responsible for the selection of a location for a shopping mall, a small market survey will soon be carried out at Ahmedabad wherein the following shopping malls/retailers will be taken as the sample:
1. Fun Republic
2. Pantaloons
3. Jade Blue
4. Bodyline
5. Twinkle
Paper Outline
The paper would start with a brief introduction to the retail industry in India and the role/importance of real estate in it.
Following this would be a discussion on the state of Indian shopping malls.
In the series of topics to be covered, next would be a discussion on three forms of retail locations, i.e.
Background
Store location and real estate markets are two most important areas of concern for a retailer by the virtue of the fact that real estate is the largest fixed investment for a retailer. For a retailer, being at the right place at the right time facilitates the development of sustainable competitive advantage. The decline in real estate prices in last 4-5 years has boosted the morale of the retailers. Because of this there has also been an increase in the supply of property for retail locations.
For every kind of a retailing format there is a series of tradeoffs to be evaluated, in terms of costs and value of site while selecting the location.
The location of the mall has become one of the decisive aspects of the retailing business. The location of the shopping mall spells its success or failure. A mall in a remote area would suffer from weak sales, poor cash flow and increased marketing and advertising expenses. Whereas, put the mall in a good location and the business will thrive with all the expectations of the retailer surpassed
The aim of this paper is to discuss in detail various aspects of real estate in the retailing industry with a specific objective of discussing all the aspects that are taken into consideration while selecting a location for shopping malls in India.
In order to prioritize the factors responsible for the selection of a location for a shopping mall, a small market survey will soon be carried out at Ahmedabad wherein the following shopping malls/retailers will be taken as the sample:
1. Fun Republic
2. Pantaloons
3. Jade Blue
4. Bodyline
5. Twinkle
Paper Outline
The paper would start with a brief introduction to the retail industry in India and the role/importance of real estate in it.
Following this would be a discussion on the state of Indian shopping malls.
In the series of topics to be covered, next would be a discussion on three forms of retail locations, i.e.
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