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Japanese store development projects – glossary of terms

A Construction / B Construction / C Construction

This terminology is often heard when a tenant opens a store in a commercial facility (e.g. shopping center) or a multiple-tenant building; it’s an itemization of new-store-related construction work from the perspective of “who pays” and “who constructs” the work.

Definitions may vary by site, but commonly, A/B/C constructions are itemized as follows.

  • A Construction: construction work that the building owner pays and constructs; e.g. building structure, common use space or aisle, etc.
  • B Construction: construction work that the tenant requests, the tenant pays, and the building owner constructs; e.g. sign attached to the building, water supply and drainage work, waterproofing work, air conditioning work, etc.  B constructions tend to be troublesome, as ownership of equipment commonly belong to the building owner, and construction costs are estimated by the building owner.
  • C Construction: construction work that the tenant pays and constructs upon the building owner’s approval; e.g. store interior work, lighting work, telephone and communication facility work, etc.

(in Japanese) 工事区分:A工事・B工事・C工事






Reduction of sales or market share of existing market of own company caused by product or distribution channel of own company. For example, when the company opens a new store close to its existing store, the sales of the existing store declines because of the market overlap. Possible measures for cannibalization could be to avoid opening new stores in same traffic line or to develop new concept / brand store.

However, it is not always negative for the growth of the company as total when managed carefully. It is also necessary to develop a system to manage performance not only by store but also by district containing multiple stores.

(in Japanese) カニバリゼーション、(略語)カニバリ


Dominant Strategy

A strategy for chain store to focus its store opening to a specified area. Area to be specified tends to be small with coffee shops or convenience stores in city centers. This is why people find same brand stores across the corner. Dominant strategy works to improve brand awareness improvement, competitive situation, reduction of logistics cost, improvement of cost effectiveness of advertisement, etc.

(in Japanese) ドミナント戦略


Store Development Division

A division in chain store retailer company that develop multiple stores under the same brand name (coffee shop, convenience store, drug store, etc.).  Most of these chain store companies rent the store location from the landlord under lease contract to operate stores.  Since availability of commercial real estate suited for retail business is limited, a prime location attracts a number of contacts from retail chain store companies eager to open stores.  The task of Store Development Division member is to negotiate with the landlord in order to be selected.  When he/she succeeds to obtain the site, he/she spends time and effort for internal coordination  until the new store opens and handed over to Store Operations.  This is the Division that owes responsibility for brand penetration and market share expansion for the company.

(in Japanese) 店舗開発部


Trade Area

A geographical area with possibilities that customers of a store might exist.  Each store has each trade area, and the size of the area varies depending on the product category or the size of the store.   Several methodologies could be used to identify the trade area; it could be roughly identified by setting certain distance (radius area) or drive time from the store, or it is also possible to identify via market research by asking customers where they live or the place they came from immediately before visiting the store.

(in Japanese) 商圏

Traffic Generator (TG)

TG is an abbreviation for “Traffic Generator”, which means a place that has power to “vacuum” people. For example, in-station department store, large-scale shopping center, leisure facility, major crossing, major interchange, public facilities, etc. could be TGs. The line that connects between TG and TG could be a strong traffic line.

(in Japanese) TG
Traffic Generatorの略。交通発生源、人々を吸引する力のある場所を指す業界用語。駅百貨店やショッピング・センターなどの大型小売店、レジャー施設、主要交差点、インターチェンジ、公共施設などが含まれる。TGとTGを結ぶ線は強力な動線となる。

Traffic Line

A line that shows the movement of people or car in a city. By analyzing and numerically rating the strength of the traffic line in relation to the necessity to traffic, actual people / car traffic volume etc, it could be utilized as an independent variable of a new store sales forecasting model.

(in Japanese) 動線


How the store is seen from TGs around the store. By analyzing and numerically rating the visibility, it could be utilized as an independent variable of a new store sales forecasting model. It is possible to improve the visibility by securing wide storefront or by putting up effective store sign.

(in Japanese) 視認性