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Retailing Topics.


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Retailing MKTG 6211 Retailing Topics Professor Edward Fox Cox School of Business/SMU Retail Site Selection Openings Expansions Closings What are the effects of proposed changes in retail sites on the revenues of new and existing stores? Retail Site Selection Why Does It Matter?
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Retailing MKTG 6211 Retailing Topics Professor Edward Fox Cox School of Business/SMU

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Retail Site Selection Openings Expansions Closings What are the impacts of proposed changes in retail locales on the incomes of new and existing stores?

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Retail Site Selection Why Does It Matter? Access to buyers Number Characteristics Growth Locations of different stores Cannibalization – own stores Agglomeration Competition Complementarity According to Wal-Mart’s Real Estate assemble, the contrast in the middle of good and awful areas surpass $25 million in gross benefit

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Retail Site Selection How Is It Done? Select: Geographic business sector Site inside of the geographic business sector If an opening or development, the organization/size of the store to be opened

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Retail Site Selection Agglomeration catches the countervailing impacts of complementarity and rivalry among retailers Intra-sort - Stores of the same sort situating almost each other Facilitates customer inquiry Examples: “motor miles” and “restaurant rows” Inter-sort - Stores of distinctive sorts situating close to each other Facilitates multi-reason shopping, virtual one-quit shopping, and offers a more extensive mixed bag of merchandise to look over Examples: strip malls and shopping centers Recognizes that buyers may utilize various stores to address their issues - shopping deliberately!!

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Retail Site Selection Agglomeration “Trip chaining” – Make irrelevant buys on the same trek Price look – Search until you locate an alluring value “Cherry picking” – Visit various stores at their deal costs

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Retail Site Selection Where Do Consumers Work? Another thought in retail site determination is the place purchasers work Do shopping treks start from home? From work?

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Retail Agglomeration Trip Chains Trip chains mirror the steering issue confronted by customers Consumers minimize reducing so as to shop expenses travel, subject to satisfying differing item/administration needs Price seek Our examination fuses value instability, permitting customers to end or proceed with a shopping outing (spontaneous) Data constraints oblige that we: Consider visits just to chose store organizations Assume that shopping outings start from the consumer’s home

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Retail Site Selection Agglomeration How does retail store influence multi-store shopping? Retail store Relative to clients Relative to different stores Retail Competition Destination Effect Specifically, how are retailer incomes influenced by close-by markets, medication stores, mass merchandisers and supercenters, dollar stores and distribution center clubs?

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Retail Agglomeration Preliminary Model - Data Description

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Retail Agglomeration Preliminary Model Results – Travel Times Travel times have the normal negative impact for own-store; cross-store travel time parameters have littler beneficial outcomes We watch symmetric rivalry among markets as far as area Revenues at EDLP stores—Food Lion and Wal-Mart Supercenter—are minimum touchy to separations that their clients need to travel

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Retail Agglomeration Preliminary Model Results - Agglomeration Wal-Mart Discount stores are most influenced by situating close different stores Wal-Mart Supercenters are not influenced by the centralization of different stores adjacent Locating close club stores does not influence retailers in our example

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Multi-Channel Retailing C OME IN. C ALL IN. L OG ON.

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Multi-Channel Retailing How “big” is the Internet - turning points Mid - 1996 : online populace of the United States was 35 million Mid - 1998 : online populace got to be 72.6 million April 1999 : more than 83 million clients online above age 16 2000 Census : 42% of US families have web access >50% of US families have PCs Source: Levy & Weitz and Census Bureau

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Multi-Channel Retailing How “big” is the Internet?

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Multi-Channel Retailing How “big” is Internet retail? Assessed Quarterly U.S. Retail E-business Sales as a Percent of Total Quarterly Retail Sales: fourth Quarter 1999–2nd Quarter 2007 Percent of Total

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Multi-Channel Retailing What do customers purchase on the Internet? Source: PCDataonline Jan 00-Jan 01

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Multi-Channel Retailing