Choosing the ideal spot for a retail outfit will be the determining factor of success. Practical and emotional influences drive decision-making when selecting the locale. So, consider every avenue before signing a lease or purchasing agreement. How can retail business owners solidify the stability of their future by determining the best spot for their shop?
Location Is Everything – After the Audience
Shop owners prioritise location because it is the foundation of a customer base. However, businesses have to choose a spot informed by their target audience.
Choosing inside a mall or on the shoreline may make the most sense, depending on what a company offers. Economic stability and national shopping behaviours may also affect an audience, adding even more layers to deciding where to open.
If a business sells suits and office wear, picking an industrial district would bring more value than a college campus where students aren’t prioritising businesswear yet. Companies should consider demographics like age and profession and psychographics like purchasing motivations for landing in the sweet spot.
For example, shopping centres or downtown areas may be optimal if a store sells trinkets or decorative items that rely on impulsive purchasing behaviours.
The audience should be the primary consideration for the location, but here are some other qualities to consider:
- Proximity to public transportation or large residential neighbourhoods
- Access to significant corporations and businesses like hospitals or universities
- Regular foot traffic from tourist attractions or populated downtown areas
- Excellent parking infrastructure like garages or large surface lots
Budgets Are the North Star
After analysing where the primary audience resides, companies can compare that against their budgets. Companies may wonder why the budget isn’t the first thought – but it’s vital to narrow down the search first. A business may look into areas that fit the budget without first considering clientele, but it’s only a short-term win to stay within your means without an available audience.
Long-term retail sustainability can’t rely on a low monthly lease alone. Factors outside a business’s control, like changing freight rates, could also influence business owners.
Audience and location refine the branch-hunting process, reducing stress, time, and money invested into digging. Additionally, particular areas offer benefits that supplement budgets instead of burdening them.
For example, malls offer constant security, having an advantage over downtown storefronts that must purchase and learn how to install security systems on their own. Freestanding stores may lack organic foot traffic, but they have greater customisation options than stores connected to other shops. Downtown retail stores may not need to invest heavily in advertising because of foot traffic, but the rent will almost always be higher because of the premium spot. Each of these variables becomes a factor in the cost-benefit analysis.
Businesses can enhance their budgets by researching local and state incentives, such as grant or tax benefit programs. A good enough reward for setting up in a specific part of town may be a business’s final motivation to confirm their choice, especially as rent and lease costs rise amid economic struggles.
Expansion Is the Future
If a business feels restricted by a limited budget, reframe that mindset to embrace possibilities. Though the budget may feel slim now, consider low-cost areas with potential expansion opportunities.
Expanding the business location could involve a few different ideas – like building out the existing space to offer more services or looking elsewhere to form branches. These thoughts can enlighten business owners about where to place their retail stores.
Purchasing land and building from scratch or getting a standalone building could offer infinite possibilities for businesses to expand and achieve their goals. Adding more parking to support curbside pickup will reduce pressure on shoppers and potentially increase business volume. Installing solar panels on the roof could inspire environmentally minded shoppers to visit – just be certain local zoning laws permit this.
If the space already has what’s needed to operate, it’s essential not to get distracted by the possibilities. To overcome this compulsion, research on competition and shopping trends is a valuable resource when considering expansion opportunities. What are similar retail stores doing to survive in their areas? Are they seeking to add more storefronts? Will competition limit the newer business in the future?
Trial runs with pop-up shops or events could gauge interest in an area before wholly committing. Options like this are low-cost experiments with priceless insight.
Opening a Retail Branch in a Prime Spot
A business should consider its budget, audience, and expansion goals when picking the location for its retail store. Opening somewhere new is as exhilarating as it is laden with second guesses. Finding a good site is an investment in the company’s future, creating familiarity with the local community and affirming the business as a household name.
