CHOOSING AN EFFECTIVE LOCATION FOR A SHOP: MARKETING AND LOGISTICAL ASPECTS

Abstract

The paper considers main factors which should be taken into account when selecting the location of a shop. The convenient location of a specialty shop is one of the key success factors of a trading organization. The paper proves a statement that trade organizations when choosing the place for a shop are oriented by the level of saturation with one or other goods on a particular territory and plan to open stores in terms of acceptable profitability.  As a result of the performed location analysis the authors have formulated and grouped the indicators for assessment of the shop’s location, namely transport availability (non-transfer communication), customer flow (pedestrian flow), density and number of storeys in surrounding buildings, level of residential development (budget, economy class, low-cost housing, business class, and premium class), competitive struggle (direct competitors, who sell identical products and competitors, who also offer another goods), presence of uncompetitive companies, geographic obstacles for population, parking lot in accordance with the shop sizes, average receipt amount and a possible amount of clients, as well as the planned profitability and the indented use of goods. After analyzing main theories, which clarify the regularities of placing retail facilities, methods for evaluating the location of stores, practical studies on the analysis of shopping areas, the paper gives and scientifically justifies recommendations for applying factors which should be taken into consideration when assessing a particular location for placing specialty shops.