A fundamental change in retail pertains to the expansion in the number of retail
formats (Kabadayi et al. 2007). The store type and location planning includes
selecting a set of store types with typical store sizes and determining the outlet
network and locations from competitive, customer and logistical perspective (e.g.,
further geographical expansion vs. increasing network density in established markets).
Location is a critical factor in the consumer selection of a store (Cachonand K¨ok 2007) and requires methods of geographical marketing. Additionally, the
outlet has to be easily accessible for supply from warehouses. As a result, outlet
planning cannot be planned separately to the distribution planning. Durvasula et al.
(1992) presented a model that incorporates managerial evaluations in combination
with consumer data. Mendes and Themido (2004) and Grewal and Levy (2007)
summarize location decision models, whereas for example Hernandez et al. (1998)
and Drezner (2009) develop frameworks for it.
Strategic layout planning determines instore infrastructure and layout at showand
backroom. The showroom layout needs to reflect the retailer’s image, must
reduce consumer search costs, influences consumers’ buying decisions (Dr`eze et al.
1994; Xin et al. 2009) and impacts space productivity. Finally, the layout impedes
instore-logistics processes and sizes the capacity and infrastructure of the backroom
storage (Kotzab and Teller 2005). Research models predominately analyze layout
planning with empirical studies (Iyer 1989; Turley and Milliman 2000; Lam 2001;
Mattila and Wirtz 2008). Hui et al. (2009) developed a probability model for
consumer behavior and derived implications for the design of retail space with
simulations.