How to Analyze Retail Locations
In order to compare potential locations, it is necessary to evaluate the features of each location in terms of:
- Catchment area (customer traffic prevalence)
- Primary: 60% to 80% of potential customer traffic.
- Secondary: 15% to 60% of potential customer traffic.
- Tertiary: Less than 15% or occasional potential customer traffic.
- Occupancy Costs
- Lease vs. Purchase.
- Security Deposit Amount.
- Utilities.
- Property Taxes.
- Community Fees.
- Maintenance costs.
- Insurance costs.
- Restrictions
- Service hours.
- Noise intensity.
- Product display.
- Media display.
- Advertising and promotional efforts.
- State or county-enforced hours of operation.
- Customer Convenience
- Proximity to residential neighborhoods.
- Bus stops.
- Parking space availability.
- Parking costs.
- Customer facilities.
- Competition
- Nearest location of competitors.
- Demand
- Potential number of customers.
- Potential product demand.