Pros and Cons of a large Intersection

Location! Location! Location! is the mantra when looking for the right real estate, whether residential or business. Now, with the economy less than desirable, location becomes a crucial part of the success equation. Being in the right location can spell success while being in the wrong location can prove fatal.
The Walgreen’s on Lawndale Avenue has a unique location. It is a free standing store actually located in a triangular area at the intersections of Lawndale Avenue, Pisgah Church Road and Martinsville Road. Those are three very busy roads so this pharmacy is passed by thousands of cars daily. Therefore, this Walgreen’s has great exposure. It is convenient to many and in addition, there is a drive thru for customers who just want to pick up their prescriptions. The location is enhanced by the fact that the new Fresh Market is just across Lawndale Drive along with a couple of new restaurants and shops. And the new retail area that includes Port City Java is just across Martinsville Road. This Walgreen’s, therefore, is close to other successful businesses which bring more customers to them.
Not everything about this location is perfect. I think that it is interesting that you can only drive in from Lawndale Drive and Martinsville Road, not Pisgah Church Road. This could be somewhat inconvenient for some people, especially during rush hour traffic. A potential customer may have to cut across the traffic to get into the parking lot. This could prove to be a problem. Also, while there is ample parking, I find it somewhat annoying that their parking lot is not flat – it actually tilts up a hill. That doesn’t bother me when walking but it certainly makes parking interesting. I’ve noticed several elderly people having difficulty parking and walking in their parking lot.
Besides the awkward parking, this store and its advantages make it a very popular Walgreens in Greensboro. Walgreens in general seem to know where to build their stores and this store is no exception – it certainly has the right location.
picture courtesy of around montana.com

The economy has certainly tanked in the past few months, and unfortunately, many of the retailers that we have depended on for years have failed, while many others are on the verge of failing. Is the economy totally the blame? Or, are there other reasons that these retailers are no longer in business?
The economy can certainly take part of the blame. With the unemployment rate nearing 10%, people simply can not afford to shop like they did a year or two ago. With the stock market at a twelve year low, people are afraid to buy anything that falls outside the necessity category. People are being very conservative with their money and are not buying frivolous big ticket items such as TV’s, cars, and houses. With house foreclosures being higher than they have ever been, people want to use their money to keep their homes. Therefore, retailers are suffering. Even retailers such as Circuit City and Linen and Things can no longer afford to keep their doors open.
The economy can not be blamed for all of the failures. The companies themselves have made mistakes. Competition is strong in every area these days, and if a company does not compete well, they are going to go under. An example would be Circuit City who has been struggling for years. They changed their products (no longer carrying appliances) to try to stay afloat but finally folded. It is a truly “survival of the fittest” mentality in the retail world.
According to the article, Retail Watch: The Perfect Storm for Retail Failure (Blank Rome LLP), another reason that companies are failing is that the ability to secure credit has almost diminished. In the past, companies in poor financial shape would just reorganize and continue. But now, companies can not get credit and are forced into liquidation. According to Retail Wire, companies no longer have the option to choose reorganizing under the Chapter 11 code.
I do think we all have to take a little of the blame for our current state and for the retailers failing. People have over extended their credit and are now paying the price. This has certainly hurt the economy, and in particular, retailers. We, the public, can not use our credit cards like we did a year ago and the companies can not extend more credit. Credit spurs on consumerism and since it is not available, the consumer is simply making wiser cash based decisions.
While it is sad to see these retailers close, it will help us to see who are the well-runned companies. We will be able to trust them more. And, the next time, credit is more readily available, and the stock market rises, hopefully the retailers will have learned a lesson – sell good quality merchandise at a fair price and within a certain price point so that consumers do not have to go beyond their budgets to buy.

pictutre courtesy of savvywallet.com