Case Study: The Growing Appeal of Non-traditional Retail Locations

The case focuses on various retailers and how they have ventured into opening their stores at non-traditional locations. The main reason why these stores venture into the non-traditional location is to expand to the underutilized locations, a strategy to beat the competition. The paper will answer four questions at the end of the case.

How would you determine the trading area for QuikTrip Park at the Grand Prairie AirHogs minor league baseball field?

The trade area for the store at the field is a secondary area. This is because the store was not it's first and had operated in Dallas for over a decade. The store was also receiving stiff competition from Texas Rangers in the field and had not been able to achieve the brand positioning they had hope. The retailer’s sales were determined by people attending sports. The trading area and the unstable market can only be those of a secondary trading area (Berman & Evans, 2013).

Is The Varsity at the University of Maryland a destination store or a parasite? Explain your answer.

The Varsity store is a destination store. One of the reasons this is so is the fact that the store was built by the Royal farms, ownership implying full control of the store. Secondly, unlike parasite stores where traffic is driven by other entities or events, Varsity store is the primary driver of traffic. It drives traffic with the amenities available in the complex. They include parking, business center, retail store, fitness center, and game room. Finally, the store attracts traffic from both the campus and outside. This is to prove that, the store does not depend on the campus to survive, instead, it provides convenience for both students and the people in its environs. In addition, the store operates around the clock (Imamura, 2018).

Based on what criteria could Camden Food Co. determine if an airport was a one-hundred percent location for one of its stores?

The store can determine this based on three factors. The first is the occupancy terms. Considering that most airport land is owned by the government, establishing the store would need government approval which could be a long process. In addition, the store may consider regulations such as taxation regulations, zoning restrictions, and leasing terms common with the location (Berman & Evans, 2013). Second, the store can use the airport traffic received every day. Since airports are subject to fluctuations determining the size of the traffic and its trends may be useful in establishing the amount of food the store needs to prepare to meet customer needs. Lastly, the store can use parking availability and vehicular traffic to cater to airport employees and customers.

What terms of occupancy are especially important for retailers locating at nontraditional sites?

There are two important terms of occupancy. The first one is the restrictions and regulations governing a trading site. The second one is whether to lease or to own the property in which the store will be operating (Berman & Evans, 2013). Since non-traditional sites are outside high traffic areas, determining the success of the store is uncertain therefore, leasing would be safe.

In conclusion, nontraditional locations are becoming popular. However, being a parasite store or a destination one is the main determiner of success. It is important for retailers to understand the terms of occupancy for the nontraditional locations before establishing one.