Good Essay On Choosing A Store Location

Type of paper: Essay

Topic: Business, Trade, Store, Commerce, District, Trading, Proximity, Increase

Pages: 2

Words: 550

Published: 2020/12/28

Question 1

There are many reasons an off-campus store selling textbooks and supplies near a college campus should determine its’ primary, secondary and fringe trading areas. They include having knowledge of your target audience. After conducting the analysis, the owner of the store can determine the type of audience he or she wants to attract. He can target his customers by either positioning himself towards a certain age group or a specific gender. Having knowledge of the market would reduce the financial investment by the owner (Hernandez & Bennison 2000). When the investor decides to set up the store without carrying out a geographical analysis, it will be difficult to overcome search a location. Additionally, this is a long term commitment which cannot be changed. The investor expects future returns in the form of huge annual turnovers.

Question 2

A proprietor of a parasite store can increase the size of his trading area in a number of ways. Marketing strategies such as superior customer services, selling high-quality products cheaply and products uniqueness will enable the parasite store to penetrate the market effortlessly and quickly. Positioning of parasite store in a low or competition-free zone will increase the size of the trading areas. The accessibility of the store by a targeted highly populated region assists to expand the size of the trading area. The proximity of the store to a good infrastructure will increase trading area by increasing the number of customers. A larger store will increase its trading area as it not only sales its products to the consumers, but also to the retailers of small parasite stores.

Question 3

A cell-phone-service chain can decide to open outlets through the strategy of isolated regions, unplanned business districts and planned shopping centers. There are several factors to consider for site attractiveness when setting up the business. They include parking availability, low competition and low property costs which are suitable when locating the business in isolated regions (Hernandez & Bennison 2000). Unplanned business districts should be located in areas of unplanned pedestrian traffic. The proximity to transportation facilities and store composition is significant when setting up an unplanned business district. Cumulative attraction is appropriate when locating in planned shopping centers. The business would be successful if the factors are considered and correspond to the type of location.

Question 4

There are numerous benefits that the retailer can accrue when establishing his business in unplanned business districts over in planned shopping centers. It is more advantageous than planned shopping centers due to the presence of pedestrian traffic and its proximity to commercial and social facilities. The pedestrian traffic brings huge turnovers to the unplanned business districts. People may come to social facilities like cinema halls to enjoy themselves and might buy products in the unplanned business districts due to the close proximity. The close proximity to commercial facilities may influence the people around to shop in the stores.

Question 5

Unplanned business district is one of the main types of the retail location. It comprises of four categories which include central business district, the secondary business district, the neighborhood business district, and the string. Neighborhood business district is composed of small stores and offers its services to a single residential area. A string comprises of the chain of retail stores selling similar product brands along a major street. A Central Business District, which is described as 'hub of the capital city ', comprises of numerous small buildings and covers less than one square miles. A secondary business district occurs at the intersection of two major streets and the goods sold similar to those in Central Business District. To conclude, it’s important to consider the size of the trading area and type of the retail location when establishing a business (Hernandez & Bennison 2000).


Hernandez, T., & Bennison, D. (2000). The art and science of retail location decisions. International Journal of Retail & Distribution Management, 28(8), 357-367

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