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.