Retail Site Location

It is said that the location of a retail store is the most important decision made by a retailer. I would definitely have to agree. I believe the site location needs to be suitable for the target market of the retail store.

I visited Walgreens on Spring Garden Street. It is in walking distance from UNCG and the surronding student housing apartments. This retailer is a type of strip center. Strip centers are shopping centers thaat usually have parking in front of the stores. Walgreens definitely has this. So, there are two types of strip centers: a traditional strip center and a power strip center. Walgreens falls under a traditional strip center. The concept is general merchandise, 30,000-250,00 square footage, one or more anchors, and within three to seven miles. The type of anchors are discount, supermarket, drug, home improvement, and large specialty discount apparel. Walgreens is also a main street location.

The advantages are that it is close to the college and student apartments so it provides source of customers. Since it is close to campus they do have security. Campus police can be at the location in a matter of seconds. Walgreens is also open late. Of course, Walgreens has plenty of parking directly in front of the store. It has a strong competition with CVS and the pedestrian traffic is good. There are walkways from campus directly to the store location for people to cross. The disadvantages are that there is no protection from the weather, no source of entertainment/recreation, and it does not draw a large size of people to the area. Mostly, because college students live in the area. Overall, I believe it is a good location.

Circuit City

Circuit City was the United State's second-largest consumer electronics chain and they have filed for Chapter 11 bankruptcy. They have lost more than $5 billion in stock over the past two years. Its business was stolen away by discounters such as Wal-Mart and Best Buy.

Customers were disappointed at the sale prices advertised by the comapny. Comments have been posted on the virtual communities (websites for bargain hunters) that the discounts were not as significant. "Discounts are small."

Liquidators say that 10-30% off is the largest electronics liquidation ever. However, customers were not buying it.

The Alliance Entertainment Corporation is the distributor to music and electronics. Retail Chain Circuit City is 1.4 billion in debt. On August 1, 2014 a $821 million debt payment will be due. To make the payment the company will begin consolidating its magazine, CD, and DVD distribution businesses.

Circuit City would like to keep its loyal customers as it reorganizes during this tough time. Circuit City is going to stick to its loyalty programs and will continue to accept returns and exchanges.

Sources:

Jakobson, Leo. "Circuit City Bamkruptcy Roils Gift Cards." Incentive. January 2009. EBSCOhost. UNCG Jackson Library. 2 March 2009. http://libproxy.uncg.edu

Tozzi, John. "Circuit City: Vying for Liquidation Bargains." Business Week Online. 26 January 2009. EBSCOhost. UNCG Jackson Library. 1 March 2009. http://libproxy.uncg.edu