Site selection for small retail stores using sustainable and location-driven indicators: Case study: Starbucks coffee shops in Los Angeles
2020 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE credits
Student thesis
Abstract [en]
Site selection decisions remains a complex yet crucial process for strong business performance. Despite the extensive number of publications in this field, the emergence of new data collection technique, improved location analytics, and changes in consumers’ preferences call for testing of new models and hypothesis. This study compares traditional site selection indicators (e.g. property size, proximities, competition, and demographic profiles) with novel site-selection indicators (e.g. environmental sustainability performance and socio-demographic characteristics from Tapestry data). By investigating a case study of Starbucks coffee stores in Los Angeles, we argue that environmental sustainability performance and socio-demographic Tapestry segments correlate with business performance indicators of small retail shops in two ways. First, higher sustainability scores result in increased foot traffic, and by extension increased business performance. Second, Tapestry segmentation stands as significant indicator of business performance in site selection modeling – specifically, by demonstrating the significant correlation between socio-demographic consumers’ segments and the number of visitors per location. The output of this study offers an alternative location-driven site selection method, important for businesses and key industry-players in sharpening location-allocation decision-making processes.
Place, publisher, year, edition, pages
2020. , p. 59
Keywords [en]
site selection, business performance, decision-making, location-driven decisions, modeling, small retail stores, sustainability, LEED, GIS, Tapestry segmentation, foot traffic, consumers, GLM, proximities, demographics, Starbucks, ESRI
National Category
Business Administration
Identifiers
URN: urn:nbn:se:bth-20053OAI: oai:DiVA.org:bth-20053DiVA, id: diva2:1455088
Subject / course
IY2594 Magisterarbete MBA
Educational program
IYABA MBA programme
Supervisors
Examiners
2020-08-032020-07-222020-08-03Bibliographically approved