This term we will focus our efforts on an industry that has high growth potential and the possibility of change among its target markets and locations. Dollar General pioneered the “dollar store” concept in 1955 and is recognized as one of the industry leaders. The firm’s web site is: http://www.dollargeneral.com/. You can also “take a store tour” by going to the “Our Stores” section and clicking on “Store Tour”. This will provide you with a first-hand look.
Here is your assignment: Suppose that you are a site planner for
Dollar General Stores. This successful chain has specific location requirements
that are briefly described on their web site at this URL:
http://www.dollargeneral.com/ourstores/realestatepartners.aspx#sitepreferences
You’d also want to consider factors like high traffic, easy access, surrounding businesses that complement dollar store shopping, and competition. You also want to match the products you sell with the target market’s needs. Let’s use some tools to try to build good site evaluation skills.
Obvious competitors include Family Dollar and Dollar Tree. Which stores
are also offer competition?
http://www.familydollar.com/
http://www.dollartree.com/
Here is the URL for an excellent industry overview of dollar stores
published by the International Council of Shopping Centers. You’ll find
some surprising facts, including “53 percent of Americans with household
income in excess of $100,000 a year shop dollar stores”.
http://www.icsc.org/srch/sct/sct1203/
There are several parts to this assignment. Each will be gone over in
class in depth on Februrary 22, from 6 to 7pm, just prior to your midterm.
You will do your best job if you start early and follow directions!
NOTES:
TITLE
TABLE OF CONTENTS
1. INTRODUCTION:
a. First, introduce the report as if you are a consultant for the firm.
Provide a description of the variables that Dollar General requires, plus
any others that you think would be important to the success of your business.
These can be variables associated with the actual location as well as variables
representing the population in the area. There is a detailed overview on
the Dollar General’s website.
b. Select a location near your home, work, or here in Camden that you
think might be a good possibility. This can be an existing business and
is not limited to sites that are for sale or under development. Determine
the approximate address, town, county, and zip code. Take a photo or series
of photos of this location and provide full address information. Use the
photos to describe the site.
2. ACTUAL LOCATION IN ITS CONTEXT: Evaluate the site using a mapping program. Find out what is in your trading area, especially competition. Print out at least two maps and evaluate the site in terms of roadways, businesses, and so forth. Be careful with highway names and intersections! You can pick from the sites below.
a. This web site is a professional GIS provider. You can input a specific address, a zip code, or name of a location. http://arcweb.esri.com/arcweb_viewer/
b. This next site, Maps On Us, is a business-oriented site that allows you to plot an address, and then request that businesses of a certain type or a certain name to be plotted on your map. You will retrieve detailed information about the businesses. http://www.mapsonus.com/
c. MapQuest is a familiar mapping program that allows you to add limited types of businesses to your map. You can add other related businesses. http://www.mapquest.com/
d. MSN Maps allows you to input an address, add business services, plus
add points of interest that might be related to traffic to your store location.
http://maps.msn.com
3. IS MY TARGET MARKET PART OF THIS LOCATION? Next, use online Census Data to provide detailed evidence that your target customers are in the trading area. Go to the Census Bureau Factfinder web site. http://factfinder.census.gov/servlet/BasicFactsServlet. There is more than one method to provide the Tables you need to assess the market potential of your chosen site. You should produce 5 tables that would be relevant to a good choice of location.
a. Use the “Enter an address” option. The next screen will ask you to select the geographic area surrounding the address you want to evaluate. The area should match the homes/workplaces of your target customers. Select the area description. The next screen will give you several options for tables. Select the “Census 2000 Summary File 3 (SF 3)”. Click on the “more files” link. The next screen will list numerous tables that are available.
b. This other approach gives you a bit more control of the specifics of the trade area for your evaluation. I think that it is more complete. You can choose numerous towns or areas to include, rather than working from just the specific address:
1) You should use both “Census 2000 Summary File 3 (SF 3).
2) Click on "detailed tables"
3) You first need to input the location that you want to study.
Go to "select a geographical type" and choose selection that best matches
your location. Is it one specific "place", is it a census tract, is it
a larger area? You may need to try this a few times in order to select
the choice that will subsequently contain your location. The descriptions
will help you understand these terms.
4) On the next screen, you will be given the option to select the state.
Select New Jersey.
5) A list of towns will appear. Select the town or area that you are
studying. Click on "add" right below it, and then "next." If your
desired location does not appear, go back to step 3 and try a different
type. The area you want may contain a few towns, especially if you are
evaluating a trade area that is larger than one specific town. You can
click in several in order to represent the area you want to analyze.
6) After you have done this, it's easy! Go to “change selections”
to access all the table types. You can now select all the tables that you
want and their names will appear in the box below. When you have created
all the table names, simply click on "Show Table."
4. LAWS CONTROLLING THE SITE: Visit your local Chamber
of Commerce, Municipal Building, or local Business Development Group. Interview
them about zoning laws for the location you have chosen. NOTE: you will
learn quite a bit from this step, but start this early! Some students
have found this to be the most interesting step of the assignment. Be sure
that you give yourself enough time to complete this part. I have samples
if you would like to see these first. Describe what you have found and
include any handouts or charts in your appendix. How do the laws affect
your proposed business?
5.SITE EVALUATION: Finally, evaluate the site using
the format given in Figure 10.7, page 252. Be sure to use the chart correctly!
Duplicate this chart and enter your ratings. NOTE: You are not asked to
collect specific information on actual occupancy or costs of the site.
Your ratings should be based on the information that you have found.
In 4-5 pages, discuss your ratings, referring to the data gathered in Steps
1-4. Put the site photo and your information from Steps 1-4 in an Appendix
for reference.