Application of Multi-Criteria Decision-Making Methods in the Area of Localization of Retail Units in the City of Brno

Localization is one of the key factors influencing the success of retail units. A well-chosen location can significantly increase the attractiveness of a given retail unit and consequently its profitability. However, the decision on location is very complex, as it involves the evaluation of many factors. Therefore, the aim of this paper is to compare and analyze multiple factors that are relevant for the decision on the location of a retail unit in shopping centres in the city of Brno, using multi-criteria decision-making methods. At the beginning of the research, individual criteria, including their weights, were determined. Three approaches using cardinal information on the alternatives according to each criterion (weighted sum method, basic variant method, and TOPSIS method) were used for the calculation. In addition, one approach requiring ordinal information on the alternatives according to each criterion (ranking method) was used. These methods allowed to systematically compare and evaluate multiple criteria related to the location of a retail unit simultaneously and to determine the ranking of shopping centres in Brno in terms of their attractiveness. It was found that the most attractive shopping centre in terms of retail unit location is the Galerie Vankovka shopping and community centre, followed by the Olympia shopping and entertainment centre.