Apr 09
3
Premium position for for shops, the so-called “high-street” sites, can give the retailer a special type of unique selling proportion, and in recent years this line of attack has been followed to such a degree that there has been a variable battle among the multiples for premium positions. But these premium positions are costly -made more so by the competition for them, of course, and they must therefore be made profitable by obtaining high turnover or high profit margins.
The rental of premises can be regarded as a cost of obtaining a selling advantages. A single retailer with only one shop, and in a merchandise field where he appeals to a limited and discriminating market, can still construct a unique selling proposition for himself out of his selection of stock items and his own buying skill which, in turn, will reflect his perception of his customers` attitudes.
For the mass market products, however, the retailer who is not strong enough to aim at the high turnover needed to sustain a High Street position, must go in for either a form of product differentiation such as a special service enterprise attached to the shop (for example, a beauty parlor attached to a pharmaceutical toiletry shop), or a positional advantage (a semi-monopoly) such as a site in a new building development or air terminal, or be lucky enough to find a convenience site in a poorly-shopped area where he has few, it any, direct competitors and is far enough away from a shopping area to make it too much trouble for customers in the vicinity of his shop to go further afield.
Continue to Premium Position For Shop and Single Retailer -2
