Factors that led to the development of out-of-town retailing - Retailing – WJEC - GCSE Geography Revision - WJEC - BBC Bitesize (2024)

FAQs

Why is modern retailing attracted to out of town locations? ›

Out-of-town shopping benefits for customers and retailers

Retailers benefit from these locations because they have larger contemporary shop units which allow a greater range of goods to be on show for sale. There is also good access for delivery vehicles.

The retail sector has changed radically in recent years. Factors driving these changes include internet retailing, store closures and other changes on the high street, and an increasing consumer preference for large multi-purpose malls.

The fundamental role and purpose of retail stores are changing. Digital transformation forced brick-and-mortar outlets to evolve as more of the path to purchase shifted online. Now, as e-commerce expands, retailers are reimagining the functionality of stores and tapping into digital tools to keep those stores relevant.

Retail geography, or geography of retailing, is the study of where to place retail stores based on where their customers are. The use of retail geography has grown significantly in the past decade as a result of the use of geographic information systems (GIS).

Out of town malls offer a better shopping experience. It is easier for shoppers to visit an out of town retail development than an urban or town centre shopping area. Typically, out of town malls offer access roads which are not crowded and plenty of “free” car parking.

Brexit is found significantly impacting consumers and retailers operating in the UK and the EU in a myriad of ways, including trade tariffs, the movement of goods, changes in the labor market, and general repercussions relating to consumer attitudes and buying behavior across the region.

An Insider tally of announcements by major retailers in 2023 finds as many as 2,373 stores set to close across the US. The rationales are varied: Some companies are navigating bankruptcy proceedings, while others say they are aiming to cut costs. Several are adjusting store formats to meet changing shopping trends.

For European consumers, Brexit has predominantly led to changes in VAT, prices and ease of buying and having delivered UK fashion goods. From the onset of the UK's departure from the EU, European customers of UK goods pay their own local VAT, which can be advantageous.

Reasons for rapid growth in Retail : a) Rising incomes and purchasing power : The average household income is increasing and leads to more purchasing power and ultimately consumption. The GDP is growing (and will continue) at a conservative rate 0f 6-7%. Rising affluence is the biggest driver of increasing consumption.

What are the reasons for growth of retail? ›

A retail business is the sale of items and services in small quantities to customers in-store or online. Grocery, clothing, and drug stores are examples of retail.

Retail is the process of selling goods directly to the consumer, usually in a shop or online. Examples of retailers include supermarkets, department stores, specialty stores, convenience stores, and online stores.

The location of any retail store is of the upmost importance as it requires long-term capital investment. A good location is key so that it attracts as many customers as possible. A well-located store makes supply and distribution a lot easier.

Having a good location is one of c primary element in attracting prospects and customers. At times a good location can also lead to an excellent competitive advantage because in retail marketing mix location is one of the crucial parameters and unique which cannot be copied by competitors in any way.

Businesses that are located in areas with a large population of their target audience are more likely to attract customers. For example, a store that sells luxury goods may do better in an affluent neighborhood. 3. Competition: The location of a retail business can also impact its competition.

Product Selection: Meeting Consumer Preferences

While price will always be important to most shoppers, it obviously isn't the only important factor. Just as higher-priced products lead to more stores shopped, consumers who find product selection to be an important factor tend to shop more stores.