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When choosing a retail location, there are a great number of factors to think about. The more of these things you take into account, the more likely you are to find a location that helps your business succeed.
In this article, we’ll discuss retail site selection and the most important components to consider when choosing a location for your retail business.
Retail Site Selection: 10 Most Important Factors
First, you must think about the population density in the area you’re considering for your business. Are there enough potential customers to make your business successful?
Be honest with yourself when answering this question. If you’re considering renting space in a new development, be sure to ask the property owner, developer, or broker when and by how much they expect the area to grow, and then do your own research.
When choosing a retail location, carefully judge the overall quality of the location. How well is it situated in the market? Do you need a central location for a single store market or should you strategically allow for a multi-store growth program? How visible is the site from the road and parking lots?
Think about how many walk-ins you’re likely to get based on what’s nearby. For example, how far are you from residential areas? Convenience is very important for most retailers.
Customer demographics is equally as important as population density during retail site selection. While having large numbers of people in the area is a good thing, it means very little if they’re not the sorts of people who would frequent your business.
Therefore, it’s crucial that you take into account area information such as median household income, average age, family size, and education level etc. This will help you determine whether or not your store will fit into the established community and that it will thrive. I highly recommend that you create a personalized list of the important demographic success attributes for your business.
Psychographics? What’s that? Let me explain.
In addition to demographics, psychographics can be extremely helpful in choosing a retail location. For instance, if your business will be catering to the health-conscious crowd, choosing a location situated in the middle of a cluster of fast food restaurants may not be ideal.
Instead, you might choose to be near a gym and a nice park with a walking path. Knowing your customers and their tendencies will help you make an informed decision. Think long and hard about your prospective customer and how they think and behave.
A person is much more likely to visit a business if it’s easy to access. Therefore, it’s important to ask yourself questions about the accessibility of the location in question:
● How easy is it to get in and out of the parking lot?
● Is the location on the “drive home” side of the main road?
● Is there a traffic signal to assist people in leaving the location?
● Is it possible for passersby to easily stop in?
Believe it or not, the businesses surrounding yours can have a profound effect on who visits your establishment and how successful you are. Consider the businesses surrounding a potential location and whether they’ll help or hurt your new spot. Cross shopping traffic from your neighboring tenants is important.
The Economics of the Agreement
Obviously, finances should be taken into consideration during the retail site selection process. This means looking at the value a certain property can offer in comparison to what other options might offer. Consider the factors listed here as well as the cost of utilities and the amount of maintenance you’ll be required to do.
In the same way that it’s important to have plenty of potential customers around your retail location, it’s also important that those potential customers see your business. This is best accomplished by securing a place on a well-used road. Retail locations that are placed on smaller roads tend to see less business. Traffic counts are easy to get and they are important.
Proximity to Competitors
If your store will have competition in the area, it’s important to consider how close those competitors are and whether a newer business will have trouble bringing in customers with a similar, more established business in such close range.
Parking on the road or depending on the availability of free or paid parking for customers to visit your establishment is certain to drive some patrons away. Make sure the retail location you’re considering has plenty of well-maintained parking available.
By taking these things into consideration, you’re sure to find a retail location that helps your business thrive and grow. Get Coach Dave’s retail site selection checklist that will help you make your decision.