Retail format selection: Occupancy cost and profitability
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 out...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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AOSIS
2017-11-01
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| Series: | Journal of Economic and Financial Sciences |
| Subjects: | |
| Online Access: | https://jefjournal.org.za/index.php/jef/article/view/21 |
| _version_ | 1811331348321796096 |
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| author | Amanda Duvenhage André Kruger |
| author_facet | Amanda Duvenhage André Kruger |
| author_sort | Amanda Duvenhage |
| collection | DOAJ |
| 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. |
| first_indexed | 2024-04-13T16:18:13Z |
| format | Article |
| id | doaj.art-6e3822ccde284a379f7728d64d059520 |
| institution | Directory Open Access Journal |
| issn | 1995-7076 2312-2803 |
| language | English |
| last_indexed | 2024-04-13T16:18:13Z |
| publishDate | 2017-11-01 |
| publisher | AOSIS |
| record_format | Article |
| series | Journal of Economic and Financial Sciences |
| spelling | doaj.art-6e3822ccde284a379f7728d64d0595202022-12-22T02:40:00ZengAOSISJournal of Economic and Financial Sciences1995-70762312-28032017-11-0110235637510.4102/jef.v10i2.2121Retail format selection: Occupancy cost and profitabilityAmanda Duvenhage0André Kruger1University of JohannesburgUniversity of JohannesburgRetail 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.https://jefjournal.org.za/index.php/jef/article/view/21Retail format selectionretail property managementoccupancy costprofitabilityretail formats |
| spellingShingle | Amanda Duvenhage André Kruger Retail format selection: Occupancy cost and profitability Journal of Economic and Financial Sciences Retail format selection retail property management occupancy cost profitability retail formats |
| title | Retail format selection: Occupancy cost and profitability |
| title_full | Retail format selection: Occupancy cost and profitability |
| title_fullStr | Retail format selection: Occupancy cost and profitability |
| title_full_unstemmed | Retail format selection: Occupancy cost and profitability |
| title_short | Retail format selection: Occupancy cost and profitability |
| title_sort | retail format selection occupancy cost and profitability |
| topic | Retail format selection retail property management occupancy cost profitability retail formats |
| url | https://jefjournal.org.za/index.php/jef/article/view/21 |
| work_keys_str_mv | AT amandaduvenhage retailformatselectionoccupancycostandprofitability AT andrekruger retailformatselectionoccupancycostandprofitability |