Consumers shop for many different reasons and there purchases may result from social and psychological influences. Because of this retailers must create shopping environments that influence purchases, keep products available and develop special marketing strategies...
Location- This is the most important issue for any retailer because it decides who and in which geographic area shoppers will come from. When choosing a location retailers look at many different factors. One thing they consider is the ease of movement within the area, this includes vehicle and pedestrian traffic, parking and transportation. Retailers also evaluate the characteristics of the area. This includes the size, shape and visibility of the building, plus what other stores are near the building, because multiple stores within an area will attract more customers. There are many options of locations for retailers, shopping centers are many stores connected in a specific area, grocery stores and various other local stores are usually found here. While other stores such as Wal Mart and Home Depot are usually free standing in there own area. Places like Subway choose locations virtually anywhere, including hospitals, schools and laundromats.
Retail Positioning is also a business strategy for many. Retail positioning involves identifying an unserved or under served market segment and serving it through s strategy that distinguishes the retailer from others in the minds of those customers. Many discount and specialty stores use this strategy to provide consumers with various budgets different items. This helps them gain market share at the expense of large department stores.
In order for any store to attract customers, they must provide a good store image. This includes the atmosphere as in the physical elements in the stores design that appeal to customers. Buy hanging posters in stores, using certain colors on walls, or providing certain elements stores can achieve a great store image and customers achieve a better buying experience. The Rain Forest Cafe provides a very unique store image. The whole restaurant is themed as a forest with big props and even live fish. It appeals to people of any age. The exterior image of a store plays a big role also. When people walk up to a store and there is trash outside, the windows are busted or anything else is not in good condition usually they are turned off and will not shop there. By providing a better outdoor environment and window displays they can attract customers.
What stores can you think of that have a good/bad store image? Have you ever not shopped at a store because of what it looked like?
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You bring up very important tops about strategic issues in retailing. Retailing is very difficult since it is constantly dealing with changing target markets, new preferences/tastes of customers, and the way society is changing. Retail stores need to constantly be assessing new situations and new ideas to keep or increase their revenue. I agree with u in the fact that location is the most important for retailers.
ReplyDeleteFrom talking about changing times before, location of certain places can also get outdated. For instance stores in certain towns or malls can lose interest from customers, which retailers need to take into consideration of possible downsizing or relocation if necessary. I do think that certain customers may not enter or shop in certain stores due to the way it looks or even the way the employees may look or dress like. All in all, retailers need to constantly be on their "A game" to compete in this ever changing society