A retailer's location strategy can be made more flexible through ________.
A) sale and leaseback arrangements with financial institutions
B) ownership versus long-term leasing
C) the use of short-term leases with multiple renewal options versus a long-term lease
D) the use of a maintenance-increase-recoupment provision

Question

Quizplus · Accepted Answer

By using short-term leases with multiple renewal options rather than a long-term lease, a retailer can easily move to a different location if the current one becomes less profitable or if market trends change. This provides greater flexibility in their location strategy. Sale and leaseback arrangements with financial institutions and ownership versus long-term leasing can also provide some flexibility, but they are not as effective as short-term leases with renewal options. The maintenance-increase-recoupment provision is not relevant to location strategy.

A Retailer's Location Strategy Can Be Made More Flexible Through