Retail manaement - Essay Example

The proposed complex will have one department store and 40 other spaces of which many will be for office buildings. The boutique will encounter low competition which is a very positive factor. The Downtown Arcade also has its downside. The developers are placing an 8% corporate tax levy on all sales after $225,000. These types of taxes are common occurrences at malls, but it is a bit high and the $225,000 application tax point is too low. This area has been a business ghost town for over 50 years.

There is a lot of uncertainly if the area can be transformed into a high level business activity area. The second potential location is called Tenderloin village. The place is an urban area in which there is business activity. The location has a lot benefits. The space is available for $1250 a month for a 900 square area lot. The contract is a short two year contract which gives the business owner flexibility. There are not extra charges related to large complex buildings. The landlord is a person Stephanie knows and trusts.

The location has its disadvantages as well. There are three other small clothing stores in the area, so there is competition. The store is located in the basement of a home, thus the location has visibility issues and limited parking. The levels of walking traffic for this location are possibly low. The third location is called Appletree Mall which is an established mall with 8 years of existence. This location provides benefits for Stephanie’s boutique. The mall has lots of clientele and plenty of visitors.

The sales of the mall went up by 12% last year. The space available is larger than the other lots with an overall space of 1200 square feet. The boutique would receive a large amount of walk-by traffic to the store which generates lots of sales. The mall is located just off an interstate highway which brings additional customers which are not necessarily residents of the region. The Appletree Mall also has its