1-For each of the four retailers discussed at the beginning of the chapter (Chipotle Mexican Grill, Lululemon, Chico’s, and Save-A-Lot), describe its strategy and the basis of its competitive advantage.
2- Give an example of a market penetration, a retail format development, a market expansion, and a diversification growth strategy that Best Buy might use.
3- The Gap Inc. owns five apparel brands – Gap, Piperlime, Athleta, Old Navy and Banana Republic and has Gap, Old Navy and Banana Republic stores located in the United States, Canada, United Kingdom, France, Ireland and Japan. What type of growth opportunity was Gap Inc. pursuing when it opened each of these retail concepts in these various locations? Which is most synergistic with the original Gap chain?
4- Identify a store or service provider that you believe has an effective loyalty program. Explain how the program works and why it is effective.
5-Why is store location such an important decision for retailers?
6-Pick your favorite store. Describe the advantages and disadvantages of its current location, given its target market.
7- As a consultant to 7-Eleven convenience stores, American Eagle Outfitters, and Porsche of America, what would you say is the single most important factor in choosing a site for these three very different types of stores?
8- In many malls, quick service food retailers are located together in an area known as a food court. What are the advantages and disadvantages of this location for the food retailers? What is the new trend for food retailers in the shopping environment?
9- Which factors do retailers consider when evaluating an area of the country to locate stores? How do retailers determine the trade area for a store?
10- Trade areas are often described as concentric circles emanating from the store or shopping center. Why is this practice used? Suggest an alternative method. Which would you use if you owned a store in need of a trade area analysis?
11- Retailers have a choice of locating on a mall’s main floor or second or third level. Typically, the main floor offers the best, but most expensive, locations. Why would specialty stores such as Radio Shack and Foot Locker choose the second or third floor?
