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In lugnet.off-topic.debate, Christopher Tracey writes:
> Maybe someone more skilled in business practices can help me answer
> these questions:
>
> Why do companies that sell similar products (especially big box stores
> like Walmart/Kmart or HomeDepot/Lowe's) typically build stores right
> across the street from each other?
>
> What are the competitive advantages of doing so?
My guess is:
1) Zoning. Most major stores are zoned such that they can only be put up in
a particular area. Hence you know that often such stores will at least
appear in the same vicinity.
2) Competition. Most likely there are a good mix of people who prefer one
big name over another-- but they also don't care to drive out of their way
to the store they prefer. So if you miss a spot (general area) that your
competition hit, then there's money going to them that *could* be yours
because you've got some people who prefer your stores, but are too lazy to
drive 2 towns over, when they can just go to your competitor's store.
3) Eye-Catching. I loved this. Near where I grew up, there was a quasi-major
route. On one side was a McDonalds, on the other side was a Burger King.
Now, McDonalds (being the sneaky devils they are) put up ANOTHER McDonalds
on the opposite side of the street, but BEFORE the Burger King (by like 1000
feet). Hence, a person driving in *either* direction wouls see a McDonalds
before they'd see a Burger King, and just go there.
With the same notion, Wal*Mart's & Targets build across the street in the
hopes that people will come to *them* first who previously would just have
to turn around, cross the street, and go to the competition. This way you
get the people with no preference.
DaveE
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Message is in Reply To:
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| Maybe someone more skilled in business practices can help me answer these questions: Why do companies that sell similar products (especially big box stores like Walmart/Kmart or HomeDepot/Lowe's) typically build stores right across the street from (...) (21 years ago, 3-Feb-03, to lugnet.off-topic.debate)
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