Part C: Evaluating Retail Location Theory
This part to be done individually.
Choose two methods of analysing current or potential retail locations, and clearly identify them inyour answer.
1. Evaluate the data requirements and assumptions that are used with the selected methods, andtheir relative strengths, weaknesses and usefulness in retail strategy. [5 marks]
2. To what extent do you agree with the assertion that “If you’re preparing to open a food or retailbusiness with a storefront, putting your business in the proper location might be the single mostimportant thing you do at startup”? (http://www.entrepreneur.com/article/73784), as it appliesto supermarket chains? [5 marks]
3. Considering the locations selected in Part B, evaluate the implications of those sites for theretailer’s supply chain efficiency. [5 marks] (not need to answer)
Part C answers are expected to include citations of retail literature on location planning and analysisand changes in the retail environment, with particular reference to the supply chain.
Methods for Estimating Demand
nMethods:
qAnalog
qRegression
qThe Gravity Model:
nReilly’s Law
nHuff’s Formulation
qHotelling model of spatial competition
