I'm looking for any research that can help me answer the question: 
How to best determine if a mall or stand alone retail location is the
better bet for opening a retail business, and the factors that go into
making the decision.  Any industry facts would be helpful or case
studies.

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Request for Question Clarification by bizwhiz-ga on 07 May 2002 21:24 PDT

Hi SR-ga

  You are in luck with this question. My background can provide the
search info and answers you require. I have spent 12 years in the
retail business as a executive of a 300 million dollar retail business
and built a successful 20 million dollar national retail chain.
However, to best provide you with the insight you need can you clarify
a few items.
1) What type of retail business are you considerig opening (eg. carpet
store or music store)?
2) Where can you located this business. Are you limited to a market
like Chicago only or more open to the Eastern USA?
3) Is your started capital established or will you bootstrap this
operation (limited funds)?

Thaks

bizwhiz-ga

If I may offer one suggestion:  a "break-even" analysis might help. 
Mall space tends to be more expensive than alternative space, and the
premium is often (attempted at being) justified by the higher traffic,
both purchase and browsing. But how many more units must you sell to
off-set the higher lease payments?  (mall lease per month -
alternative street lease per month) / profit margin per unit sold =
additional monthly sales [in units] just to bust even.  Subjectively,
a mall location would probably enhance the attractiveness and sales
of, say, tuxedos, but a street location may well be better for video
rentals. But you can't do too many numbers - the more numbers you run,
typically the better you are able to identify and understand risk
factors.

Also, please consider using an attorney to review potential leases.
Mall leases tend to be VERY one-sided with longer terms and more
onerous conditions. If you are there for, say, 6 months, and find it
is not working, or that another location may be more advantageous,
what alternative would you have?  Are you stuck paying for the
remaining term?  What is the lessors obligation to mitigate damages,
etc.

Good luck!
weisstho-ga

I have had a long discussion regarding this with my friend.

These are two main points that we have came out with,

i. Climate. Warm countries tend to have more malls e.g. Malaysia
compared to cool countries e.g. England. This is simply due to the
degree of comfort being afforded to the shoppers. It will be rather
impractical to have an Oxford Street (stand alone retail space) style
shopping area when the average temperature is around 32 degrees
celcius in Malaysia. Shoppers will simply not want to walk under the
heat! Malls are normally air conditioned.

ii. Family values. Malls tend to integrate family entertainment
centres such as cinemas and bowling centres. Hence, malls are more
suitable for countries with big families e.g. avg of 5 people in a
family in Malaysia. In the UK, 1 out of 3 married couples are divorced
and average number of children is likely to be 1 or 2. Hence,
malls/integrated family entertainment centre is not very popular.

Hope that gives some seed for thought.

Unless you have a business plkan, one can't give you an answer,
You won't see any Aamco Transmissions or Midas Mufflers in a mall.
Many retailers will not go in to freestanding.Out-Lots in malls are
some times OK.Very high cost.only your plan will give you the
answer.What are the trends
is a bad question.Which is better? only your business plan will tell.
werner-ga

Sr,

The answer to a retail business is location, location, location. If
you don't have a good amount of flow of people outside your door, your
business is dead.

In business school, I learned that on average in the US, it is better
to be in the mall.  However, location within the mall is very
important.

When determining which is better, the mall vs a stand alone, it is
important to consider which specific locations will give you the
greatest flow of people...and that is it.

Also, the case we studied that shows how as simple business fails
because it doesn't have the right location.  You could buy it off of
Harvard Business Review online. Michael J. Roberts, ICEDELIGHTS,
Harvard Business School Case 9-898-196, 1998

claudietta

Sr,

The answer to a retail business is location, location, location. If
you don't have a good amount of flow of people outside your door, your
business is dead.

In business school, I learned that on average in the US, it is better
to be in the mall.  However, location within the mall is very
important.

When determining which is better, the mall vs a stand alone, it is
important to consider which specific locations will give you the
greatest flow of people...and that is it.

Also, the case we studied that shows how as simple business fails
because it doesn't have the right location.  You could buy it off of
Harvard Business Review online. Michael J. Roberts, ICEDELIGHTS,
Harvard Business School Case 9-898-196, 1998

claudietta