The Complete Guide to Choosing a Store Location4 minute read
Pros and Cons of Store Locations
With so many options available in real estate, business owners should evaluate the advantages and disadvantages of opening a store in a certain place. Here is an overview of the most common locations for retail, along with their benefits and challenges.
These are independent locations which are isolated from other stores. They are usually located on the side of the road, near other independent stores or malls. Some examples include park kiosks, mom-and-pop shops, corner stores, and mini markets.
- Cheaper than average.
- Doesn’t share space with other competitors.
- Less rules regarding setup, displays, promotions, service times, etc.
- Less customer traffic.
- Parking space may be limited or non-existent.
- Low visibility.
Natural/Unplanned Shopping Areas
These are retail clusters that have been growing over time and have multiple stores, which are independent from each other. Some examples of these clusters include downtown business districts, high street locations, neighborhood business districts, and strip malls.
- High pedestrian traffic during the day.
- High resident traffic.
- Constant car traffic (since they are usually located next to highways)
- More shoplifters.
- Higher need for security systems.
- Limited parking.
These sites have a large assortment of retailers which are placed next to an anchor store. The wide variety of options drives customer traffic. Some examples include malls, specialty markets, mixed-use developments, lifestyle centers, and outlets.
- High visibility.
- High customer traffic.
- Good parking availability.
- Dependance on anchor store (if it fails, the location may become a “dead mall”).
- Community fees.
- More expensive than average.