Business Studies Paper

The Evaluation of Two Sites for ABC Supermarket


Introduction. 1

Observations. 1

Recommendations. 2


I reviewed two sites for ABC where one is located in uptown New York where the other is located in Chinatown, New York.


The first location in uptown New York mainly has a white upper-class population. These are individuals who are highly educated and have a relatively high income. I observed that outside the site, mostly middle-aged women would pass throughout the day on foot. The location does not have any other supermarket within a one-kilometer radius and the main shops in that area were for high-end goods such as jewelry and luxury vehicles. There is ample parking space in the area since most of the people I saw were pedestrians. In fact, the location is zoned as a commercial area. It is important to note that it is located next to a residential zone that houses the upper class. The premises is in a prime location although it will cost very little to ready it for the opening which would be good for the business. However, the space available for the premise is not very large. The rent, given its size and location, is relatively affordable and rightly prized.


The second location is in Chinatown, New York. At the site, I saw people of all types of races although Asians and Africans were dominantly present. Most of them seemed like middle and lower class citizens. Other than that, they seemed to be averagely educated, with most having high school diplomas. Within a one-kilometer radius, there were two other supermarkets which were, however, small franchises. The area does not have enough parking space and is classified as a commercial zone. It is important to note that the commercial zone is next to a massive residential area that houses middle-class individuals. The premises will need a lot of renovation which will cost a lot of money since it needs rewiring, a new paint job, and removal of other unsightly markings on it.  The space is massive and is almost double the space of the other premises. For its big size, the rent is rather affordable. I also noticed that there was a lot of police activity within the area, suggesting that insecurity might be rampant.


I would recommend that the company picks the location in Chinatown, New York. The main reason being that the area has a larger customer base of middle-class individuals. Despite the fact that the premises will require extensive renovations, it will be cheaper in the long term compared to the premises in Uptown, New York. I recommend it gets renovated and opened; interestingly, the cost of the renovation plus rent for a year equals a few months’ rents for the venue in Uptown New York. Furthermore, there is far more human traffic in Chinatown which will ensure a constant customer base. I also recommend that the firm employ a renowned security agency upon the opening of the supermarket. The area seems to be prone to criminal activity and the presence of security agents at the facility will give customers a sense of security as well as deter potential criminals. Despite the fact that there are two other supermarkets in the area, I believe they do not pose much competition. In any case, if they do pose a threat after a few months of opening, I recommend that they are bought out and rebranded into smaller branches the intended supermarket.

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