Selecting the right location for your retail store may be one of the most important decisions that you will make as a business owner. The difference between the right location and the wrong location is the difference between profit and loss, success and failure.
Before you start looking for a location, carefully analyze the business you are operating, based on the products or services you are planning to offer. If you have a product to sell, you need to figure out how much space you require – display areas, aisles, storage areas, dressing areas and so on. If you are a service provider, you need to factor in office area, reception area, conference rooms. Based on these requirements, you will be able to shortlist or eliminate locations even before you start looking.
So, step one is to compile a list of your requirements based on your business type.
Target audience and market
Once you have figured out your space requirements based on your business needs, you need to analyze your target audience – age, gender, income level and so on. You also need to find out if the geographic location of the shop is in close proximity to your customers. If your retail space is not easily accessible, they will not visit the location. Last but not least, you will have to spend time understanding the labor situation of the area. Will you face labor issues because the location is not easily accessible by public transportation?
Step two is to analyze your prospective locations based on geographic area in relation to your target audience and labor requirements.
The traffic patterns of an area can affect your business. You need to analyze the location based on accessibility to the area. How difficult is it to reach the store by car or by walk? Is the location accessible by public transport? Is there a difference between weekday traffic and weekend traffic? Each of these factors will affect the number of customers who visit your location. Too much traffic and customers may not visit. If the location is too isolated, the customers may not be aware about your store.
So, step three is to analyze traffic patterns to ensure that the location is convenient and easily accessible. Also make sure that there is sufficient parking space for your customers.
These are the top three factors to consider when looking for retail space for your business. Additionally, you should also consider factors such as location competition, merchant associations and city by-laws. A shop selling the same product mix at a lower rate will affect your sales. Similarly, city by-laws or zoning rules can eliminate locations of your list.
Contact us to find out how we can help find you the perfect retail space.