Question 1

Which of the following statements about shopping malls is true?

Accepted Answer

None of the statements are true. Shopping malls typically have higher rents than central business districts, the external environment is managed by the mall, the tenant mix is carefully planned, and malls often have a mix of different types of stores.

Question 2

What are some of the challenges being faced by malls?

Accepted Answer

All the options listed are challenges faced by malls, including outdated infrastructure, weak apparel business, competition from other retail formats, and the demand for value alternatives.

Question 3

Why would a retailer choose not to expand to a central business district?

Accepted Answer

All the options listed are potential reasons why a retailer might choose not to expand to a central business district, as they can negatively impact customer convenience and business operations.

Question 4

Which of the following best describes outlet centres?

Accepted Answer

Outlet centres are often located in areas with a large trade area, sometimes extending 100 kilometres or more, to attract customers from a wide region.

Question 5

Why would a small retailer be interested in opening a shop in a mall kiosk?

Accepted Answer

A small retailer might be interested in opening a shop in a mall kiosk because it offers short-term leases, the ability to sell seasonal merchandise, prime locations, and is relatively inexpensive compared to a regular store.

Question 6

Even though planned shopping centres are an excellent site option for retailers, they have their disadvantages. Which of the following describes one of these disadvantages?

Accepted Answer

Rents in malls are often higher than at other locations, which can be a disadvantage for retailers operating in planned shopping centres.

Question 7

Downtown locations usually offer:

Accepted Answer

The answer of Downtown locations usually offer:
...

Question 8

Which of the following statements about outlet centres is true?

Accepted Answer

Outlet centres are typically located some distance from regional shopping centres to attract customers who are willing to travel for discounted prices.

Question 9

Where is a central business district located?

Accepted Answer

A central business district is typically located in the downtown business areas of a city, where there is a concentration of commercial and business activities.

Question 10

The Homer Laughlin China Company in the U.S. state of West Virginia manufactures Fiesta china in a variety of colours. The factory has a store where they feature Fiesta products that are discounted or distressed. This type of centre is called a/an:

Accepted Answer

An outlet centre is a type of shopping centre where manufacturers sell their products directly to the public at discounted prices, often including items that are overstocked or have minor defects.

Question 11

Which of the following statements about the central business district (CBD) is true?

Accepted Answer

CBDs with a large number of residents can support retail trade due to the proximity of potential customers.

Question 12

Hazelton Lanes in Toronto is a shopping centre composed of upscale apparel stores, gift shops, and many high-quality boutiques. It is an example of a/an:

Accepted Answer

Hazelton Lanes is described as having upscale apparel stores and high-quality boutiques, which aligns with the characteristics of a fashion/specialty centre.

Question 13

Which of the following retailers would most likely be found in a power centre?

Accepted Answer

Power centres typically feature large, big-box retailers like Home Depot, Winners, and Best Buy.

Question 14

Shopping centres that focus on posh neighbourhoods, high-income areas with an outdoor, traditional streetscape can be considered as:

Accepted Answer

Lifestyle centres are designed to cater to affluent consumers, often featuring upscale retailers and a pleasant outdoor environment that mimics a traditional streetscape.

Question 15

Where would you most likely find a fashion/specialty centre?

Accepted Answer

Fashion/specialty centers are typically found in high-income trade areas because they cater to consumers who are willing to pay more for unique and high-quality goods.

Question 16

Why has the number of outlet centres declined?

Accepted Answer

The decline in outlet centres can be attributed to a combination of factors, including the availability of discounted prices elsewhere, increased price competition in traditional retail, decreased customer demand, and dissatisfaction with product quality at outlet centres.

Question 17

Which of the following statements about downtown locations ("Main Streets") is true?

Accepted Answer

Main Streets often have lower occupancy costs compared to central business districts (CBDs), making them attractive for certain types of retailers.

Question 18

Water Street in St. John's houses many professional services, as well as specialty stores, apparel boutiques, restaurants, and gift shops. The street has a high volume of pedestrian traffic. Water Street can be considered as an example of a:

Accepted Answer

Water Street in St. John's, with its mix of professional services, specialty stores, and high pedestrian traffic, is characteristic of a central business district, which is typically a city's commercial and business center.

Question 19

Scott wants to open a holistic medicine shop with merchandise he claims will cure the common cold. He has $26,000 to invest in the business. How might a kiosk satisfy his needs?

Accepted Answer

Kiosks are much less expensive to rent than a store, which would be beneficial for Scott given his limited investment of $26,000.

Question 20

Beatrice has been sporting a new diamond ring for some time and finally decided to shop for the wardrobe to match. She selected a shopping centre featuring upscale apparel shops and boutiques that was two hours away from her home, but according to Beatrice, it was "well worth the drive". Beatrice was probably going to shop in a/an:

Accepted Answer

Beatrice chose a shopping centre with upscale apparel shops and boutiques, which is characteristic of a fashion/specialty centre.

Quiz 5: Retail Locations Strategytrade Area Decisions and Site Assessment