The right location of your retail store is absolutely vital to your business’ success. From accessibility to how often your customers will visit you, your store’s location can dictate it all. But selecting a competitive retail location is a strategic decision that can be overwhelming if you are unfamiliar with the process. To help you familiarize with it, here are 6 factors to consider as you narrow down the right location for your retail store:
1. Demographic. It’s important that you don’t correlate a lot of traffic with a lot of customers. Look closely at the median age, income and household to choose a location that meets the definition of your target market.
2. Visibility. The better visibility your retail store has, the less advertising it will need. Consider the customer’s viewpoint as to whether they can see your store or your store’s sign easily from the main flow of traffic.
3. Competition. Your competitors choose their locations based on the ideal demographic of the area. Determine whether the types of business in your prospective location are compatible with your own; the good ones drawing a similar target audience to your area while the bad ones sell the same products you sell but at a discount.
4. Regulations & Planning. Your retail store’s long term success can rely on the regulations and planning surrounding your potential location. Find out whether there are restrictions that may prevent you from renovating or improving your location, or if there are any major development plans that can affect your retail operations.
5. Location Costs. Besides the base rent, consider the other costs involved in the location. Depending on your lease, responsibilities regarding utilities, building maintenance, security, property taxes and any remodeling needs can be a potential cost to you.
6. Negotiation. It is crucial that you have an expert who can negotiate the lease for you and more specifically examine the terms of the lease, build-out allowance and the condition of the property.
Finding the right retail location requires time and careful consideration. Not only does it require you to have the ability to analyze market opportunities but you must be able to identify prime locations to maximize your business’ potential. For the success of your business, it is sometimes best to consult an expert who can help you through the process.
Mr. Edsel Oliveira has over 20+ plus years of management experience in assisting businesses from all over the world establish and significantly grow in the U.S, particularly in the apparel retail industry. He was influential in introducing famed Grendene footwear brands Rider and Ipanema to the U.S.
