How to Select the Retail Store Location

How to choose a retail store location

Just what is the ideal retail locations where success is assured?

The most scientific students of retail merchandising are the great chain operators in the grocery, drug, and notions field.They have learned through costly experience the important lesson in locations.Before any of these merchants will make a final decision, they analyze the location from every possible angle. They “case  the joint” to use vernacular.

 

Following are some of the questions for which they find the answers with respect to a new retail store location:

How much retail, office and storage space do you need?

What is the nature of the proposed neighborhood?

Is the neighborhood new or old?

Are its people poor, rich, or average?

It is a business or residential neighborhood?

Is the majority of prospective customers in the young or middle-aged group?

Will they be largely transient customers or regular ones that may be depend upon?

How does the pedestrian traffic move?

A count should be made at various periods of an average day to determine whether more people pass on the side of the street where the store will be place or on the opposite side.

What other types of retail stores are near neighbors?

Are they store stores that draw people past the new location?

Is parking space available and adequate?

Is direct competition near?

Is it a progressive and growing neighborhood or town?

What are the conditions in the community and how will they affect the future?

Is there adequate fire and police protection?

Other questions will suggest themselves and they have all, no doubt, been asked and answered mentally by anyone planning to open a new store.But have they answered accurately?

The location selected is too permanent a decision to taken lightly.It is better to write these questions down, investigate, and get the most accurate answers.Put the answers down following each questions and analyze them.

It is also wise to get advice of people from the bank where you do business and finally from the firms that will be the suppliers to the new store. All of these people will be glad to help with advice. All will wish the new business to succeed if from self interest alone.

 

Just what is the ideal retail locations where success is assured?

There is no rule, no formula that anyone can lay down as being  the absolute answer.

We have all seen tremendous successes in locations where, by all rules of logic, they should have failed.By the same token, retail businesses have failied in what apperared to be an ideal locations.

Times_Square_retail_stores.jgpThis simply means that location alone is not going to make a retail store success or failure.There are other factors which must be present and which a good locations aids in assuring success.

In theory, a corner with traffic passing alone two streets, with windows facing both streets, entrances on each and with another entrance within the building.

However, it is not always possible to achieve the ideal.

Compromise is sometimes necessary. If the location is not ideal, we must offset this handicap with special effort in layout, decor, and service.

Selection of retail location requires time and careful consideration. A retail store cannot survive in a poor location because customers will avoid patronizing a place that is not easily and safely accessible.Choosing a location should never be rushed through. If you have not found a suitable location, do not plan to open until you are sure you have got what you want.

Remember: Opening a retail store in a poor location is fatal.


About the author
Kristjan Hiiemaa
Entrepreneur building better POS and cloud-based retail management suite . Product guy. CEO & Founder of Erply.