Retail Store Location Selection Problem with Multiple Analytical Hierarchy Process of Decision Making an Application in Turkey

Abstract

Retailers are the most powerful actors of the distribution channels with proximity to consumers and potential to create market. Retail store site selection is a strategic decision, both in terms of customer satisfaction and profitability of the company to changing market conditions and intense competition. Retail site selection decision is a long-term investment. Long-term investment decisions are difficult and costly to change. Retail store site selection is a process that must be followed carefully in order to pass ahead of the competition. In this process, election-related data collection and scientific analysis, and decisions must be made in the light of these data. Therefore, in the process of taking decisions managers use scientific methods to provide significant benefits in decision making. Administrators must also consider the combination of several criteria in the selection of retail store location. This problem is complex and has multi-criteria decision-making structure. Such a decision can be modelled analytically.In this study, selection of retail store concept in the literature has been identified, the studies that has been dealt with the problem of the selection of retail store, were examined. A retail store location selection criteria was defined. Selection model was established with the AHP method. The study was applied in the Aygın Milk Inc. The aim of the study, for the managers of the company to decide to use both qualitative and quantitative approach. The goal is to choose the most appropriate location of retail stores in real business life.