Location, Location, Location!

The real reason for a companies success to me is the location of the store. What's a store without a location? If you don't have people, you don't have a store. RCS was learning the positive affects of location for a retail store, and it made me think of stores that I regularly go to. I asked myself why do I go to this one instead of another? Do I do this subconsciously? Then it hit me. It really is all about the LOCATION!

A store that I regularly go to is Walgreen's. I do not have any ties that would make it a deciding factor that I would drive just to a Walgreen's. This particular Walgreen's is right next to a CVS, which is equivalent. I really asked myself why I choose Walgreen's rather than the CVS? I could definatly understand why after thinking about it.

First, there are two ways of exiting the store unlike CVS which is a terror to get into let alone get out of. I didn't think this was such a big deal but Walgreen's is right next to a stop light which allows me to turn right rather than trying to have an accident by trying to dart across traffic like CVS.

Second, Walgreen's is so convenient for me to go to because it is close by. I like to be able to walk down the street to pick up a magazine if I wanted to. I like the option of the cross walk right by Walgreen's. I find this more of a safety aspect.

Third, I think Walgreen's has more selection and variety. I like the layout of the store. It is not overcrowded. I like drive-thru pharmacy as well. This is a major plus for me! Very convenient!

Retail is really all about location. After thinking about why I shop at the places I do I have come to realize that location is probably the first thing I think of now!


Photo By: Photobucket.com

Circuit City

Professionals are saying there is no mystery why Circuit City failed, but why is this so shocking. Time magazine says "a horrible economy, and poor customer spending played a small role" in the the reason why Circuit City closed it's doors. The number one reason? "Simply poor management" the time quoted.
Circuit City was one of the most successful electronic speciality stores in the 1980 and 1990s. After that time period the store never changed.
A main reason for the downward spiral may have been because of the failure to secure prime real estate. Most circuit City's were out of the way for consumers. A second reason may have been that Circuit City stopped selling appliances. A big success for competitor, Best Buy. Third, with new technology Circuit City just didn't keep up. Circuit City never did in store promotions with the newest technology like Apple and the IPod which Best Buy made huge profits from. The biggest mishap may have been the neglect of building up a website like Amazon.com or Best Buys user-friendly web page. With the new generation everything is based off online shopping. Circuit City did not keep up with the current times.
According to the Times, one of Circuit City's biggest downfalls was basic inventory management. The management didn't know how to move their inventory.Leaving all of the old merchandise in the stock but was unable to move in new products, which enables them to pay off the debt from all of the old merchandise. With all of the debt equals more debt until finally, bankrupt.
Another key issue that drove customers away was the decline in customer service. The company was said to have laid off its top hourly employees, and replaced them with workers that were payed less, losing focus of the customer and services, according to consumerist.com
I did take advantage of the discounted merchandise when Circuit City had it's Going Out of Business Closeout. I think it was the second time I have gone into a Circuit City, and now I know why I didn't go before!
CITES: *Times Magazine time.com
*Consumerists.com
Photos by: PhotoBucket.com