Location, Location, Location

A flower shop near Olivet Memorial Park in Colma, CA. (Photo: Tom Hilton)

One of the private-sector retail stores adjacent to the main Austin cemetery sells grave monuments and related items, while another is a major gardening center. These are sensible location decisions—these retailers provide convenience to customers who will be using the cemetery.

A similar example is provided by the locational choice of our sons’ orthodontist—directly across the street from the local middle school. These are examples of agglomeration economies, but are in the retail sector and based on consumer demand, not production.

I wonder what are other good/bizarre examples in which small retail firms’ locational choices are determined by the fixed location of a major public facility that attracts potential customers? Brothels next to seaports?

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COMMENTS: 67

  1. Cameron says:

    Pawn shops across from casinos.

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  2. Wise Owl says:

    Tavern next to Irish neighborhood. Good

    Tavern next to police station. Not good.

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  3. Greg says:

    Bars that open early next to the Social Security Office and Post Offices in New York City.

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  4. Wade says:

    Auto repair shops and emissions testing stations next to the DMV.
    Gas stations and fast food stops near public freeways.

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  5. Deb Morrissey says:

    When I was in college (when CD sales were still brisk), I was very impressed by whoever managed to site a Tower Records immediately across the street from the Student Union. Perfect placement.

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  6. Marty Murphy says:

    Criminal lawyers near courts (for their own convenience, really); property lawyers near real estate offices; funeral homes near major churches; mega-stores away from everybody else for cheap parking.

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  7. Mark says:

    Auto Insurance agencies, the kind that sell 6-month policies with 1-month payment required up front … near Department of Motor Vehicles (which requires proof of insurance to register a vehicle).

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  8. Kate says:

    Cheap food and coffee shops near college campuses.

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