RETAIL SITE LOCATION —: TIME FOR A NEW APPROACH?

Arguably the largest investment any retail distribution company can make is to open a new location. In a current situation where opening a new superstore can cost in the region of £1–£1½m, it is clearly vital to identify and examine all the factors involved in such a decision. The writer argues that, in current methods of site location, there are significant deficiencies; particularly, an over‐emphasis on achieving sales maximisation which may not necessarily yield maximum profits. The ideal approach is to ‘model’ the entire system and to establish that alternative which offers the optimum design which will maximise profits. A subsequent article will deal with the construction of this basic model.