CH10 Store Location and Site Selection Strategies

Question 1

isolated store (p. 245)

Answer 1

a retail establishment that is not located near other competing or complementary businesses

stand-alone store, typically way from malls and shopping centers

Question 2

unplanned business district (p. 246)

Answer 2

a type of retail location where two or more stores are situated together or in close proximity without prior long-range planning

eg. stores have popped up in a location overtime, “unplanned”

Question 3

central business district (CBD) (p. 246)

Answer 3

the commercial and business center of a city

eg. maybe downtown montreal, where all the offices are in high-rise buildings, think “place ville marie”

Question 4

secondary business district (SBD) (p. 248)

Answer 4

an unplanned shopping area in a city or town that is typically located at the intersection of major streets

eg. Chabanel sector (fashion, design, service businesses, co-working, and technology) , Marché Central sector (retail stores, restaurants, and entertainment venues)

Question 5

neighborhood business district (NBD) (p. 248)

Answer 5

several small stores with the major retailer typically being a supermarket, large drugstore, or a variety store

eg. Plateau Mont-Royal, close to where jaimie used to work

Question 6

string (p. 249)

Answer 6

a group of retail stores, with similar or compatible product lines, that is located along a street or highway

eg. Main street, Van and all their thrift stores

Question 7

planned shopping center (p. 249)

Answer 7

a purposefully designed and developed retail area that contains multiple stores and services in a coordinated layout

eg. Royal Mount (everything about it planned, from stores selected, to size of land, etc.)

Question 8

balanced tenancy (p. 250)

Answer 8

a retail area (i.e., a shopping center or plaza) that is carefully planned to have a complementary and balanced mix of stores

eg. Carrefour Laval (contains anchor stores, diverse retail mix, dining options, entertainment, and convenience)

Question 9

regional shopping center (p. 252)

Answer 9

a large, planned shopping facility appealing to a geographically dispersed market

eg. rockland

Question 10

megamall (p. 253)

Answer 10

(derivative form of a regional center) an enormous planned shopping center with over 1 million square feet of retail space, featuring multiple anchor stores, several hundred specialty stores, food courts, and entertainment facilities.

eg. royalmount

Question 11

community shopping center (p. 253)

Answer 11

a moderate-sized retail facility serving 20,000 to 100,000 people within a 10 to 20-minute radius, featuring a branch department store or category killer store, several smaller stores, and a moderate assortment of shopping- and convenience-oriented goods and services

eg. cote-st-luc shopping center

Question 12

power center (p. 253)

Answer 12

a community shopping center occupying 200,000 to 400,000 square feet, featuring up to six category killer stores or several complementary specialty stores, typically located at major highway intersections and designed to compete with regional centers.

eg. marche central

Question 13

lifestyle center (p. 254)

Answer 13

(another type of community center) an open-air shopping facility ranging from 150,000 to 500,000 square feet, featuring upscale specialty stores focused on apparel, home products, books, music, and restaurants, designed to foster community interaction

eg. place montreal trust (downtown)

Question 14

neighborhood shopping center (p. 254)

Answer 14

a planned, convenience-oriented retail facility anchored by a supermarket or drugstore, serving 3,000 to 50,000 people within a 15-minute drive, typically arranged in a strip layout, and featuring a mix of everyday goods and services retailers

eg. plaza cotes-des-neiges

Question 15

one-hundred percent location (p. 255)

Answer 15

the optimal retail site within a major business district, characterized by the highest land values and rents, providing the greatest exposure to a store’s target market and resulting in the highest sales potential

eg. downtown montreal

Question 16

affinity (p. 258)

Answer 16

a store’s attraction to an area because of its ability to complement, blend in with, and cooperate with the other stores in the area

when affinity is strong, the sales of each store are greater than if the stores are apart (eg. Nike and Apple, Coca-Cola and McDonald’s, etc.)

Question 17

retail balance (p. 258)

Answer 17

the optimal mix of stores within a district or shopping center that satisfies market needs, enables one-stop shopping, provides adequate assortment within categories, and maintains a proper mix of store types

eg. marche central has clothing stores, electronic stores, costco and food options all in one area

Question 18

terms of occupancy (p. 259)

Answer 18

the specific conditions and rules that govern how a property can be used or inhabited by an occupant

includes ownership vs. leasing, type of lease, operations and maintenance costs, taxes, zoning restrictions, and voluntary regulations

Question 19

straight lease (p. 260)

Answer 19

a retailer pays a fixed dollar amount per month throughout over the life od the lease

eg. $10,000 per month, 5 year term

this is the simplest and most direct arrangement

Question 20

percentage lease (p. 260)

Answer 20

rent is related to sales or profit–usually on top of a base rent (think fina 210)

eg. retailer tenant pays $10,000 per month plus 5 percent of sales. (chain tenants, long leases)

Question 21

graduated lease (p. 260)

Answer 21

rental amount increases at predetermined intervals, allowing tenants to start with a lower rent that gradually rises over time, often tied to market conditions or property value appreciation

eg. $10,000 per month for years 1-5; then $12,000 per month for years 6-10

Question 22

maintenance-increase-recoupment lease (p. 260)

Answer 22

retailer tenant is responsible for one-half increase in property taxes and insurance based on a base year of current lease

Question 23

net lease (p. 260)

Answer 23

retailer tenant pays all expenses with respect to property upkeep except mortgage and structural repairs