Thursday, March 19, 2009

Retail Site Location

http://www.delhaizegroup.com/images/store_foodlion.jpg

I went to the new Food Lion grocery store, right outside of Forest Oaks Country Club. It is located right off highway 421 and Liberty Road. I found that this particular retailer falls under neighborhood community shopping centers. The new Food Lion is located in a little shopping strip with a nail place. It is located in a very small neighborhood center and is very convenient for people who live in the Forest Oaks community to go to.

The main advantages the Food Lion has is that they offer customers very convenient locations and easy parking. The parking lot is huge and they have relativity low occupancy costs. Another advantage of the new Food Lion's location is traffic. You don't have to worry about heavy traffic getting to the Food Lion and leaving. It is located off the 421 highway and near Forest Oaks.

However, there are some disadvantages to the new Food Lion's location. First of all, they have a limited trade area due to it's size. The grocery store also lacks entertainment and restaurants. The only reason customers will come out to the neighborhood strip is to go to the grocery store or to get their nails done. There isn't much more to offer entertainment wise and restaurant wise. Another disadvantage of the location is the weather. There is no protection from the weather compared to enclosed shopping malls.

Overall, I think the new Food Lion is in a good location. People living in the Forest Oaks community haven't had a convenient grocery store to go to in years. Now they finally have a very convenient place to grocery shop. Other than the few disadvantages, I think the new Food Lion location will continue to do well because there aren't any other close grocery stores around.

Wednesday, March 4, 2009

Why Circuit City Failed


Circuit City went bankrupt during this difficult economic crisis. There are many reasons why Circuit City failed. First off, it dumped sales of many popular appliances. Secondly, when it spun off Car Max, it let a lot of talented management go. Therefore, without proper management Circuit City began to fail. Another reason Circuit City is now out of business is because of Best Buy. Best Buy became more innovative and popular than Circuit City. Additionally, Costco was another one of Circuit City's competitors (Bnet.com).

When Circuit City knew they were hurting for business, they tried to save money and stopped paying commissions to their sales people. They also let the majority of their experienced sales associates go and commercial credit became very tight. This did not help at all. This is another reason why Circuit City is now out of business (Bnet.com).

As you can see from Circuit City going bankrupt, the economic crisis we are now in is affecting the retail industry greatly. When Circuit City failed George Whalin, president and CEO of Retail Management Consultants said"This is very significant. It shows you how bad things are for the retail industry" (CNNmoney.com). Hopefully the retail industry will start to improve as soon as possible. Circuit City is not the only retail business to declare bankruptcy. Many other retail business such as Clarie's, Linen-N-Things, Sharper Image, and many more have also failed. Hopefully we will start to see a turn around in the retail industry soon.

http://blogs.bnet.com/ceo/?p=1493
http://money.cnn.com/2009/01/16/news/companies/circuit_city/