These criteria are summarized in Table 2. Some stores, whether they offer goods or services, tend to cluster to achieve market advantage. Clustering, which is most observable in planned shopping centers, also facilitates more efficient auto access. Stores of all kinds are getting larger, both in floor and market area, taking advantage of economies of scale. Sites that offer good visibility and regional as well as local access tend to be preferred. Often, this is in a stand alone location rather than in a commercial cluster. Developers tend to avoid locations that create environmental impacts that might be objectionable to local residents. [Page]
TABLE 2. Key retail location decision criteria
Agglomeration economies
Scale economies
Visibility, access and parking
Environmental impacts
Zoning and public resistance
Retail location has shaped and is in turn shaped by consumer behavior (Table 3). Consumers express strong preferences to buy cheaply, to compare competing products, and to experience variety. And they are willing to travel often and farther than their neighborhood commercial center to find each.
TABLE 3. Consumer behavior characteristics
Bargain hunting
Comparison shopping
Preference for variety
Destination flexibility
Schedule
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