7 Steps to your next retail location

Reatil store location

Wherever a business owner or an entrepreneur chooses to locate their retail business, it will have a major impact on their public presence, walk-in traffic, future income potential, and other factors. Choosing a location that does not take into account these factors will limit the ability of the business to succeed and expand. To this point, in this article, we will take a closer look into answering the question: How do you find a good retail location for business success? Read on to know more about how you can select a location for your business that can drive you halfway to success!

You have two options for brilliance and business success in terms of selecting a retail store location. The first is to trust the feeling of your heart and to learn it the hard way. Unless you are fortunate as the number seven, or a natural retail genius, losses are inevitable.

The second way is to make an assessment-based educated guess. Use your judgment, public information, and think about all the examples that are associated with your situation. After all, millions of businessmen and entrepreneurs have lived in your situation before.

Many entrepreneurs have failed, some of them so quickly and some of them in a slow process, but why did they fail? A great number of them have also succeeded and were able to build huge retail chains, what was their secret? Retail success is not a formula to follow, you can establish retail in the perfect location and still fail, or the other way around.

Choosing the retail location is critical to success, but don’t be discouraged. After all, all you need to do is picking and comparing a number of possible locations for your retail. Do not try to go on a quest to find the perfect location, look for the best place that will fit the needs and specifications of your business.

Prior to selecting a new location for your retail store, try to think hard and define how you view your business now, and what direction you want it to head toward in the future. Answering these questions will help you paint a better picture of your business:

  • What are your main consumer demographics?
  • Are you able to envision your office?
  • Do you have any idea of what you want your company to be known for and what you want to sell?
  • Have you thought about the amount of space, storage, or even the office size you will need in your new location?

If you do not address these fundamental questions, it will be difficult to find the perfect location for your retail store in order to produce the maximum amount of profit. Below are the things you should take into consideration when asking yourself how do you find a good retail location:

1. Considering the products

Think about what kind of items you are going to sell, as certain kinds of locations would require certain products. Is your retail going to be considered as a convenience store, a specialty shop or a shopping store?

To encourage the consumer to make a purchase easily, convenient products need to be easily accessed. These goods are of general interest to customers as well. A mall may not be a good location for convenience products, as this type of product may be priced on a different scale compared to other retailers of the property. Consumers may be inclined to patronize convenience stores on their daily commute path. This can mean renting a space in or near a transportation center or along heavily trafficked roads.

Specialty goods meet more unique needs than products of general use. Generally speaking, customers don’t mind traveling out of their way to buy these types of products because they can’t buy it through convenience or general goods retailers. This type of store can do well in the vicinity of other shopping locations because their sales can complement each other.

A big-ticket retail store usually sells products with a higher price tag that are occasionally purchased by the customer. Types of items sold in a big-ticket retail store are furniture, vehicles, and luxury clothes. Due to their higher prices, customers of these products have a tendency to compare prices prior to making a purchase, this is why retailers in this section are advised to establish their stores in the vicinity of their competition.

2. Considering demographics

At the time of selecting a city or state to establish your retail business, before making a final decision, you must for sure conduct a comprehensive investigation on the area. Look through local newspapers and media as well as having a chat with other small business owners in the same area. From the local library, chamber of commerce or the Census Bureau, obtain demographic data. Specialty research firms could provide demographic information to retailers as well. Each of these sources must have details about the population, income brackets, and average age of the city. You know who your clients are, so make sure you find a location close to where they live, work, and shop.

3. Considering Accessibility and Traffic

Do not imagine a lot of traffic in a certain location is equal to a lot of customers. Retailers prefer to be located at a place where multiple customers come, but this is only beneficial if these shoppers are in alignment with their target market. Small retail stores can take advantage of the traffic created by larger stores nearby. Retailers will consider many things along the following lines:

  • How many people are walking or driving past their location?
  • How well public transportation operates in the area?
  • Is it convenient for customers and trucks to get in and out of the parking lot?
  • Is there ample parking?

When thinking about the visibility of a location, try to view the place from the eye of the customers. In many instances, the better the visibility of a retail location, the less it will require advertising in the future.

4. Considering neighbors and the competition

Other local businesses are able to actually help or hurt your retail store in the prospective location. Decide if nearby business styles are compatible with your store. For instance, a high-end fashion boutique, may not succeed next door to a discount store. Instead, for more optimal results, place it next to a nail or hair salon that appears to attract the same customer segments as your business.

5. Considering the location costs

Include all location-based costs involved when finding a retail store location together with the base rent amount. Costs such as:

  • Who pays for the care and safety of the lawn?
  • Who pays for the heating/air unit maintenance and repair?
  • Are you going to have to do some painting or remodeling in the location to suit your needs?
  • Will the property tax be paid by the retailer?

The place you can afford now and what you will be able to afford in the future can vary. Creating sales projections for a new business is challenging. One way to realize how much rent you will be able to pay is to find out how much profit is created by similar retail companies and how much rent they are paying.

6. Considering Personal details

Consider work-life balance problems such as distance from the shop to your home and other personal concerns if you are planning to work in your store. If you have to spend a lot of your time commuting to and from work, the commute can outweigh the advantages of being your own boss. Moreover, several restrictions set on a renter by a landlord, manager, or community can throw a  wrench in the independence of a retailer.

7. Concluding considerations

While selecting a location, your retail shop might require additional handling. Create a list of any special features that may need to be addressed in your business. Features such as:

  • Will the store require to have different lighting, fixtures or any other hardware installed?
  • Are there restrooms available for both staff and customers?
  • Is the area adequately fire and police protected?
  • Is a sanitation service available nearby?
  • Is there a canopy in the building that offers cover at the time of rain?
  • Are there limits for sales on Sunday (blue laws)?

In conclusion, do not feel rushed to decide where your retail store should be located. Take the time to explore and study the location carefully. If you need to change your schedule and push back the opening date of the shop, then you should do so. Waiting for the perfect location for the store is better than simply settling for the first location that comes along your way. This article provided you with the concepts you need to think in order to answer the question of how do you find a good retail location for business success. By considering these ideas, you will be able to make a more aware decision.

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