Retail format selection: Occupancy cost and profitability
Journal of Economic and Financial Sciences
| Field | Value | |
| Title | Retail format selection: Occupancy cost and profitability | |
| Creator | Duvenhage, Amanda Kruger, André | |
| Description | Retail property management teams neglect the influence of occupancy costs and the resultant profitability of different retail formats when assessing their decision to expand. The aim of this research was to provide an easy-to-understand profitability equation for shopping centres and stand-alone outlets to guide retail property management teams in their decision-making process. A quantitative study, using secondary data obtained from a single retailing group and analysed using a simplified profitability formula, was conducted. The research endeavoured to determine the influence of rent on profitability to provide financial guidance to property management teams when benchmarking different retail formats. This included an investigation into the relationship between size and rent value besides the comparison of the profitability of different retail formats. Although financial considerations form an important part of the decision-making process, retail property management teams should continue to combine the results of financial benchmarking with consumer preferences to achieve optimum results. | |
| Publisher | AOSIS | |
| Date | 2017-11-06 | |
| Identifier | 10.4102/jef.v10i2.21 | |
| Source | Journal of Economic and Financial Sciences; Vol 10, No 2 (2017); 356-375 2312-2803 1995-7076 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://jefjournal.org.za/index.php/jef/article/view/21/20
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