Why is a store's location one of the most important strategic retailing decisions?

Question

What will be an ideal response?

Answer 1

Making good location decisions is important because, once decided, it is the least flexible variable of the marketing mix. Location dictates the limited geographic trading area from which a store draws its customers. Retailers consider various factors when evaluating potential locations, including location of a firm's target market within the trading area, kinds of products being sold, availability of public transportation, customer characteristics, and competitors' locations.
In choosing a location, a retailer must obviously consider the rental, leasing, or ownership terms of a potential property as well as the characteristics of the site itself. They research the types of stores in the area and the size, shape, and visibility of the lot or building under consideration. They usually evaluate the relative ease of movement to and from the site, including factors such as pedestrian and vehicular traffic, parking, and transportation. Retailers should look for compatibility with nearby retailers, because stores that complement one another draw more customers with similar product needs for everyone.
Some retailers, including Toys "R" Us, Walmart, Home Depot, and many fast-food restaurants, opt for freestanding structures that are not connected to other buildings, but may be located within planned shopping centers. Sometimes, retailers choose to locate in less orthodox settings where competition will be lower and where consumers have limited other options.