ABSTRACT
This chapter discusses the location of the establishment, choice of the location, location theories: the macro approach, the store selection models: the micro approach and the marketing mix variable ‘location’ with existing branches. Most retail location theories are, in some way, based on gravitation models, derived from the well-known Newton’s law of gravity. Building on the work of Christaller, B. J. Garner and Davies further structures the hierarchy of retail facilities. Reilly tried to find a point where consumers, given their place of residence, were indifferent in their choice between either one or the other store location. In his central place theory, Christaller keeps in mind the selection aspects. In his theory, he uses a number of refinements that partially overcome the objections to be made against Reilly’s model. The resulting hierarchy of shopping areas resulted in a concentric zoning of the retail structure.
