Retailing is all about making the product available for the consumer. The consumers are of distinct behaviour patterns. While one type of consumer is satisfied with the products available around their proximity areas, there are few others who do not mind labouring to get the product from any kind of distances.


Consumers also do not want to step out of their comfort zone to reach for a product. With these extreme kinds of behaviour patterns, Retail industry has reached its significant heights in the market. Retail has a very important significance with respect to its place, price, product and promotion.


Price and Products are very important to every customer. But when the product has proper promotion then the market is automatically generated. The products can be made available at all places. So the four Ps, Place, Price, Product and Promotion are very important for every retail organization.


Benefits of Space Planning:


Adequate space planning techniques enable the retailer to have end-to-end control of merchandise. This display will attract more customers, minimizes stock outs and operating costs, enables inventory productivity, and increases the financial performance and ultimately more profits for the retail outlet. Retailers can drive top line sales, and achieve good overall returns on their invested amount of capital.


The traditional space planning process is altered meeting with the localized needs of customers. Retailers should move away from developing prototype store layouts, as no two stores look alike. They should maintain store specific plans by gaining more knowledge about their stores.


Effective planning of the retail space and managing it in a right way is the key factor in the lifecycle of merchandise planning and execution. More retailers are adopting the fact that space management is an integral part of any retail business.


The important aspects to consider before selecting Retail Place:


  1. Is the area or location well populated?
  2. Understanding the advantages and disadvantages of the location
  3. Factors to be considered
  4. Understanding traditional and modern issues of store location


Retail place plays an ideal role in the success of the retail unit. Along with this there is also importance of good merchandise, better customer experience, and effective sales promotion which are very essential. Location or place of the retail outlet decides the smooth functioning of the unit. If not the profitability of the organization will face adverse effects. The employees working for the retail outlet will have to be paid heavily if the retail destinations are not properly located.

 

There are also other areas like financial, commercial, political, technical, economic, religious aspects which are also to be considered before finalizing the place of a retail outlet. The transportation and availability of raw materials and accessibility to distributors are also very important. Other wise it becomes very difficult to procure the different variety of goods for distribution. This will increase the cost of the good and also the longer shelf life of the products. Any marketing strategies adopted will not encourage the marketing personnel as the goods will not move from the shelf. Procuring, preserving, placing, promoting and profiting from the goods are very essential to all the retail outlets. It needs judicious planning and perfect placing of the retail unit is very essential. There fore the first success of the retail outlet is the ideal place of location.


Store location is onetime, long-term and a judicious decision. Once decided there is no going back on the decision. It will result in ultimate success or total failure of the retail outlet. It can neither be repeated nor reversed.


The decision of place or location mainly arises when:


  1. A new store is launched
  2. When there is expansion of the existing store
  3. When technological changes take place
  4. When there are more customers to the market
  5. When there is a new product launched
  6. When a product has place significance
  7. When the products pricing are well controlled by the market forces
  8. Changes due to economic and global reasons
  9. When the need for centralization or decentralization arises
  10. When there is a need for opening or tapping a new market
  11. When the lease duration is exhausted
  12. When the existing area is jammed with traffic, no proper vehicle parking facility
  13. Other uncontrollable factors influence the shift of the retail outlet, like:
    1. Local law and order
    2. Transportation
    3. Proximity to customers
    4. Central place
    5. Available resources and funds
    6. Labour availability
    7. Parking facilities
    8. Other allied services like municipality and sewerage
    9. Taxes and costs


A new store needs an ideal and attractive location. The place is the least compromised area for any retail unit. Along with this the entry into the market with proper advertisement and pomp and show is also essential.

When there is expansion of the existing store, it's essential to add more products. These should be in tune with the existing products, which will create a status of a destination stores. That is a similar product, in one place of shopping. This will enhance the importance of a show room.


Technology changes along with time. In order to continue in the market it is very essential to go with the trendy and latest methods. When old becomes outdated, new has to be intensely welcomed. Other wise any business will be shown the exit gates.


More customers are more business. It is also a word of mouth advertisement. Though not all customers will generate business, they are sure to create advertisement and awareness in the market.


The author is working in the capacity of a Lecturer, Facilitator and Student Counsellor at different places and is PG and MS in Psychotherapy and Counselling


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