Since Scott McPherson wants to establish a chain of retail stores, it will be advisable to locate his retail store at a strategic place where there are mass consumers of the product. For instance, in the middle of the town will be strategic since there are many customers as well as other organizations whose raw materials are the groceries such as fruit juice companies, hotels and restaurants.
Secondly, while choosing where to locate the retail store, it is important to consider the availability of competitors (Hayward and Fleek 1982). It will be advisable to locate the store at a place where there exist no such retail store in order to avoid competition. By doing this, Scott will ensure maximum customers sine they will have no other retail store to compare with.
Thirdly, availability raw material or of the groceries is another important factor that Scott McPherson should look into before deciding on the location site of his retail store. Raw material is an important factor before Scott decides on the location of the store. Without raw materials or access to the products, Scott will be forced to incur extra cost to cater for their expensive transportation. For instance, he should locate his store where the transport cost of the raw materials or the products will be accessible and cheap.
Access to public transport is the fourth important factor. The location should be accessible to every customer. All customers in need of his supplies should be assured of an efficient transport mode to the place, failure to which will results customers avoid Scott McPherson grocery retail chain store.
Availability of labor is the next important factor that Scott McPherson consider while deciding the location of the retail store. He should ask himself whether the decided location place has the required laborers. If not, he should look for another place where laborers are easily available.
The last and also important point is the parking area of the customer’s vehicles. This is an important factor since, if Scott McPherson retail store will provide be providing whole sale products, it is quite possible for customers to be carrying the product by pick-ups, Lorries, and other type of vehicles. If no parking space, consumers will avoid the store and look for other stores that provide the parking space.
Retail chain stores are established primarily to engage in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise, store retailers therefore operate fixed point-of-sale locations, located and designed to attract a high volume of walk-in customers using, extensive displays of merchandise, and mass-media advertising to attract customers (Nelson 1995). This suggest that, Scott McPherson should make effective use of the inherited amount to establish a retail chain store of his dream which will encompass all the above factors for a growing retail store. Failure to utilize the capital effectively will result to the retail chain store collapsing. Competitors will on the other hand take advantage of the falling store to establish their store thus leading to closure of the retail store.