When it comes to selecting a retail store location, there are many factors to consider. Your business plan should be the starting point for your decision-making process. Retail stores should be located where market opportunities are best, and once a country, region, city or commercial area and neighborhood have been identified as satisfactory, a specific site must be chosen that best serves the desired target market. Site selection can make the difference between success and failure.
A thorough study of customers and their buying behavior should be conducted before choosing a location. The best store in the world won't live up to its potential if it's located where customers can't or don't want to travel to shop. The main function of the store or retail center is to attract the buyer to the location. Alternatively, retailers should take the store to wherever people are, whether at home or in crowds. Some examples of how to take the store to a place where there are a lot of people include the location of the airport, theme parks, and vending machines.
Your proximity to other competing companies could be crucial to your success. Could they provide a benefit to your company or cause an obstacle? Determining which competitors are in your area and what their offerings are could help you ensure that you choose the right location for your business. If there's too much competition, it can be a warning sign to expand your horizons to a new location. There are exceptions to this, such as car dealerships who want to be close to each other while customers compare and choose the best car offer, hence their proximity. Similarly, if you have an element of your offering that is unique or that offers some type of new innovation, then choosing an area that already has a mature market could be the ideal way to attract customers quickly and establish a presence in a new area in a relatively short period of time. While the perfect business location is different for every company, covering these crucial areas will undoubtedly give you the best chance of overcoming the odds and keeping your business on track for future success.
Consumers may be inclined to frequent convenience stores located on the way to their daily trips to work. This type of store can work well close to other shopping places because their offers can complement each other. In a store where dozens or hundreds of customers come to shop with their vehicles (two or four wheels), they need space to accommodate their vehicles. PESTLE Analysis recommends that you perform a PESTLE exercise to determine the political, economic, social, legal and environmental factors that could affect the viability of your company. You know who your customers are, so make sure you find a location close to where your customers live, work and shop. It is necessary to recognize that country analysis will be an increasingly important aspect of the location strategy as merchants seek opportunities for growth.
Along with base rent, consider all location-related costs when choosing a retail store location. The economy of an area being considered for location should provide a general indicator of the long-term retail opportunities present in an area. Retailers want to be located where there are a lot of shoppers, but only if those shoppers meet the definition of their target market. Retailers should be aware of the different aspects of culture that will affect the location decision. A mall may not be a good place to buy convenience products because this type of product may be priced differently than other retailers on the property. There are a lot of things that business owners should consider when choosing the location of their business, whether it's setting up an office or store for the first time, or if they want to expand to new areas.
Waiting to find the perfect location for the store is better than settling for the first one that pops up. It includes analyzing the type and number of competitors, other industrial parks, shopping complexes, franchise chains, individual stores and other department stores. Establishing a new store among the established competition means that the new store will have its market share with respect to the existing ones.