For every retailer, store location is extremely important because it influences the number of consumers, frequency of purchase and even a brand image. The store should be located in populated areas with good transportation and parking facilities. The constraints of space are also a liability to the retail trade. With a localized economy, Nine West depends on a reasonable level of trade in the surrounding neighborhood (Whalin 19).
Choosing a store location, retailers like Nine West take into account accessibility, visibility and transpiration decisions. Nine West exploits the opportunities for expansion within the city as the spatial constraints of customer location and movement. In this case, zoning and regional planning play a crucial role in the location of the store. The central area allows Nine West to attract both repeat customers and one-time purchasers. Also, the retailer takes into account competition and neighborhood (Underhill 23).
Nine West is located as a free-standing boutique. This strategy helps it to sustain a strong brand image and keep a core of loyal supporters. This location is chosen because it supports the market position of the company as a premium brand store and allows Nine West to differentiate itself from a discount store and hypermarkets. Perhaps a strong premium brand might lead to a leading approach and position through internal expansion and store location.
The main weakness of the location is the presence of direct competitors. Thus, the center of the city attracts a lot of potential consumers: brand loyal and one-time purchasers. Given the rationing of sites for large-scale development by planning constraints, competition for the most attractive development sites became intense. Thus, it does not influence the price level determined by market competition and the company’s strategies.
Nine West is a multi-channel retailer including a store, online and catalog sales. This strategy allows the company to become interlinked with potential customers on a worldwide basis and regional basis. Multi-channel strategy help Nine west to be (1) consumer-orientated and (2) market-orientated. It allows customers to choose the best and easiest way for purchase and payment. The online site provides information about products available online and in stores, informs customers about fashion trends and innovations, gives detailed review of products for all tastes. This strategy helps Nine West to provide a combination of informative, advisory and communicative features (Levy and Weitz 24).
Non-store location allows companies to reach millions of customers around the world and to get along with customers. The reduction in layers of intermediation, lower search and transaction costs are advantages of online shopping. The website is in itself an advertisement since it can inform, persuade, and remind customers about the services and products. Online sales will make it possible to take market segmentation to another level, by providing an economical means by which firms can deliver individualized products and services to each and every customer (Whalin 76). Online, customers can compare prices and discounts available in different sites. The main disadvantages are fraudulent actions, low confidence and poor services provided by online companies. In contrast, the advantages of stores are that customers can see or examine any product they want to purchase. Stores minimize fraud and unfair treatment of customers. Also, for many women shopping is one of the favorite activities which play an important role in their life, and for this reason online purchases cannot replace this activity.
Works Cited
Levy, M. Weitz, B.A. Retailing Management. McGraw-Hill/Irwin; 6 edition, 2006.
Whalin, G. Retail Success! Willoughby Press, 2001.
Underhill, P. Why We Buy: The Science Of Shopping. Simon & Schuster, 2000.