Locational decision making in retailing: an exploratory framework for analysis

Abstract

Competitive pressures on retailers in the 1990s are leading to a closer consideration and use of location as a source of competitive advantage. Increasingly, locational decisions involve not only the evaluation of potential new sites, but also the management of existing ones. This paper takes stock of the range of locational decision-making activity being undertaken by retailers through an exploratory study of thiry-seven companies in the UK. The need for a strategic perspective for understanding locational decision-making activity is highlighted. A review and synthesis of work undertaken in the fields of strategic marketing and the geography of retailing leads on to the development of a conceptual framework for exploring the operational and strategic dimensions of location. The paper concludes with the identification of a research agenda for further work in this area.

Keywords:

• Retail location
• retail strategy
• store networks
• site evaluation
• decision making