Case Study Lowe's Stores
1. Spatial Distribution of Lowe’s stores in the Toronto Area
From Map One, we can see that Lowe’s stores are spread out across the Toronto area, covering large areas of the GTA and each store has its own large service area without overlapping with adjacent Lowe’s stores. This arrangement allows Lowe’s to develop healthy and non competitive trade areas. The large distances separating each store apart prevents internal competition forming up by individual stores wanting to gain more market control.
The main locational strategy that Lowe’s utilizes is accessibility. Highly accessible retail locations are popular amongst the general shoppers and can effectively increase the customer flow and increase in sales. In order for stores to be highly …show more content…
Birdwood mall and several large retail stores are within the area. The area is well connected by public transit (TTC) and can be easily reached by driving through Sheppard Ave or the highway. The location is reasonably well to establish a new Lowe’s store where there are not many competition stores close in the area as the local market is not saturated with home improvement stores. It can be beneficial for Lowe’s to open at this location as the site is equally far away from nearby Lowe’s stores and can effectively reduce the distance people will have to travel to a Lowe’s store. On the other hand, Site B (Appendix C) is located west of the Downsview airstrip. The surrounding area is largely gold course with a large retail center due south. Although the area is close to highway 401 and 400, but it can be hard to reach by public transportation as the area is not as well covered and developed by public transit. There is a residential community due east of the area and there is a Home Décor at the retail center that can be a huge competitor for Lowe’s. It can be costly and difficult for Lowe’s to gain market share of the local market if the market is not already …show more content…
Quantitative evaluate of the new store impact
Method such as collecting consumer data can be utilized to quantitatively evaluate the impact of a new store on the trade area. Retail chains like Lowe’s can collect information from their customer through surveys that collects consumers’ shopping preference, request credit card user census from card companies, or signing up for speciality card in store and record the addresses of the customers. A map can be formulated from the census data to show the area where people spend the most at the store and expand to a location that is closest to the major source of demand.
Another method would be creating new Thiessen models with theoretical locations and show the various arrangements for new trade area and the coverage. New stores can be tested at different locations on the map, and the size of the polygons formed around the stores can tell us the influence new store will have on the trade area and the possible impact in sales the new stores have on existing stores due to competition from identical stores in close
From Map One, we can see that Lowe’s stores are spread out across the Toronto area, covering large areas of the GTA and each store has its own large service area without overlapping with adjacent Lowe’s stores. This arrangement allows Lowe’s to develop healthy and non competitive trade areas. The large distances separating each store apart prevents internal competition forming up by individual stores wanting to gain more market control.
The main locational strategy that Lowe’s utilizes is accessibility. Highly accessible retail locations are popular amongst the general shoppers and can effectively increase the customer flow and increase in sales. In order for stores to be highly …show more content…
Birdwood mall and several large retail stores are within the area. The area is well connected by public transit (TTC) and can be easily reached by driving through Sheppard Ave or the highway. The location is reasonably well to establish a new Lowe’s store where there are not many competition stores close in the area as the local market is not saturated with home improvement stores. It can be beneficial for Lowe’s to open at this location as the site is equally far away from nearby Lowe’s stores and can effectively reduce the distance people will have to travel to a Lowe’s store. On the other hand, Site B (Appendix C) is located west of the Downsview airstrip. The surrounding area is largely gold course with a large retail center due south. Although the area is close to highway 401 and 400, but it can be hard to reach by public transportation as the area is not as well covered and developed by public transit. There is a residential community due east of the area and there is a Home Décor at the retail center that can be a huge competitor for Lowe’s. It can be costly and difficult for Lowe’s to gain market share of the local market if the market is not already …show more content…
Quantitative evaluate of the new store impact
Method such as collecting consumer data can be utilized to quantitatively evaluate the impact of a new store on the trade area. Retail chains like Lowe’s can collect information from their customer through surveys that collects consumers’ shopping preference, request credit card user census from card companies, or signing up for speciality card in store and record the addresses of the customers. A map can be formulated from the census data to show the area where people spend the most at the store and expand to a location that is closest to the major source of demand.
Another method would be creating new Thiessen models with theoretical locations and show the various arrangements for new trade area and the coverage. New stores can be tested at different locations on the map, and the size of the polygons formed around the stores can tell us the influence new store will have on the trade area and the possible impact in sales the new stores have on existing stores due to competition from identical stores in close