Retail Location Analysis

RETAIL LOCATION ANALYSIS

GENERAL
1. What is the shopping mall builder/developer name?

2. Where is/are the proposed location(s) in the shopping mall? (State available floor unit numbers, and their corresponding available floor sizes)

3. What is the ratio of shop space ownership between developer and individuals?

4. What are the lease/rent quotations?

5. What is the lease length?

6. Is there a rent escalation rate? If so, what is the rate? (e.g. every 3 years?)

7. Are there any incentives provided by the developer/management?

8. What is the security deposit amount? (e.g. 6 months' gross rental?)

9. Are there any service charges (utilities, communications etc.)? If so, how much are the charges?

10. Provide images of the shopping mall (Exterior)(attach photographs here)

11. Provide images of the shopping mall (Interior)(attach photographs here)

STRUCTURE AND BUILD
12. Is the shopping mall building in need of any repairs?

13. How many floors are there in the shopping mall?

14. What is the total shopping mall built-up area?

15. If our business were to expand in the future, will the shopping mall be able to accommodate this growth?

16. Do the existing utilities (lighting, air conditioning etc.) in the proposed location(s) meet the needs, or is rewiring required?

17. Is the ventilation in the proposed location(s) adequate?

AREA SUITABILITY/TRAFFIC
18. What is the average footfall? (State for both Weekdays and Weekends)

19. Are there any other shopping malls in the vicinity? If so, state the names and addresses.

20. Are there any neighbouring traffic generators? (schools, offices, industrial areas)

21. Is the shopping mall located in an area zoned for our type of business?

22. Is the shopping mall located near large roads/highways that can improve accessibility?

MALL ENVIRONMENT
23. Are there any brands of consumer durables within the shopping mall? If so, list the names.

24. Are there digital IT electronics megastores in the shopping mall? If so, list the names.

25. Are there large grocery stores/supermarkets in the shopping mall? If so, list the names.

26. Are there any camera dealers (including grey) in the shopping mall? If so, list the names.

27. Are these competitors located close to our proposed location? If so, are we able to compete with them successfully?

28. Are there other notable big brands in the shopping mall? If so, list the names.

29. Is there a cinema located within the shopping mall?

30. Are neighbouring businesses likely to attract customers who will also patronize our business?

31. Is the shopping mall trade area heavily dependent on seasonal business?

ACCESSIBILITY
32. Is the shopping mall accessible by foot? (e.g. do shoppers have to manoeuvre through any slopes or hills?)

33. What are the types of public transportation served in the area?

34. What are the average transportation frequencies? (i.e. how many minutes between each bus/train?)

35. What is the carpark size/number of spaces?

36. Are the parking spaces adequate?

37. Is there a taxi stand available?

38. Can suppliers make deliveries conveniently at the location (e.g. is drop-off point accessible?)

SAFETY
39. Is the shopping mall located in a safe neighbourhood with a low crime rate?

40. Will crime insurance be prohibitively expensive (if applicable)?

CONCLUSION
41. Location proposal (State the proposed location, and the business case/reasons for choosing the location)

42. Any other final recommendations?

OTHER THINGS TO CONSIDER
When examining the way customers travel to make retail purchases, it is always necessary to take into consideration the distance that a customer has to travel. The distances that customers may be willing to travel are different, depending upon the type of object to be purchased. The number of trips undertaken by consumers and the travel time will be different based on specialty or commodity product (Salvaneschi, 1996).

For purchasing a specialty product (e.g. a DSLR camera), which is generally expensive, unique or long lasting, the consumer is willing to travel over a longer distance. This tends to expand the trading area of that good or service. On the other hand, to purchase everyday supplies or common items consumers often prefer convenience, as the trips for such goods are frequent, distances are short and travel time is brief. For instance, people typically will not drive to another town for fast food, unless they are on way to or back from other destinations.