Steps to Picking a location for a retail shop – location, location, location

Written By Steps To Faculty Published September 9th, 2010

You have your business idea and want to establish a retail shop. Great, but where do you put it? Of course issues such as rent or leasing is the first consideration that comes to mind when selecting a spot for your retail shop. After all, if you will not generate enough monthly revenues to cover this basic expense then you will not have a business. But did you know that there are other factors you should ponder when trying to select a good location for your retail outlet? Yes location is the most essential factor in addition to rent or lease that you need to consider when finding a location for your retail store. The following are five ways to contemplate location for your specific retail outlet. Take a look.

Step 1 Be convenient

If you have a food business or a convenience store you may want to consider avoiding places such as a mall. Since food staples and convenience stores, like 7-11, are low in price and tend to have many customers, such operations can be stand alone or near gas stations or other hidden locations where people can stop on their way from work. Do not place a small food store or convenience store near a large grocer though. You will have too much competition. Think about the location of your nearest 7-11 store. This is a good example that illustrates this point.

Step 2 Think alike

Since customers generally compare prices these days, a shopping operations, such as an upscale clothing store like Dress Barn or Coldwater Creek, fare better when located near each other. This is why car outlets, such as GM or Honda, are usually located within a two mile proximity to each other. Clothing stores are generally in malls or located near each other but offer complementary goods such as a dress from Marshalls and then a nice pair of shoes from Payless, located next door.

Step 3 Be different

If you sell unique products in a specialty store you will not be able to be located as a stand alone store. Depending upon the unique product you sell, customers will be willing to out of their way to buy from you. However, to maximize your sales and potential for new clients you should be near other shopping outlets or by a mall. Examples include religious stores and Korean BBQ restaurants.

Step 4 Consider the details

While a high traffic area may generate customers, do you have sufficient space to handle the traffic? Picking a location for a retail outlet also involves being able to manage growth. Do you have enough staff to handle customers? Will there be too little or too much competition? These must be ironed out ahead of time.

Step 5 Look at the big picture

Are you just another copycat of another store? For example there is a reason you do not see WalMart next to K-mart. Both are the same discount stores, but WalMart sells it cheaper. It is not in Kmart’s interest to be situated near WalMart. Be unique enough to attract customers.

Remember location is complex and must be carefully thought out before selecting a spot for your retail business. Please visit stepsto.com for more great business.


Roger Due

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