What do you do if you're an entrepreneur looking for the perfect retail location?
Choosing the right retail location is a pivotal decision for any entrepreneur. It can determine the visibility of your business, the flow of foot traffic, and ultimately, your sales and profitability. As you embark on this journey, you'll need to consider factors such as demographics, competition, accessibility, and cost. Keep in mind that a great location aligns with your brand image and is convenient for your target customers. The process can be daunting, but with a strategic approach, you can find a spot that not only attracts customers but also fits your business goals and budget.
Understanding who your customers are and what they want is the first step in finding the perfect retail location. Dive into demographic data to get a sense of the local population, including age, income levels, and shopping habits. Consider also psychographic information, which covers the values, attitudes, and lifestyles of potential customers. This knowledge will guide you in choosing a location that is not only populated by your target market but also resonates with their preferences and needs. Remember, the best location is where your ideal customers live, work, or pass by regularly.
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Federico Fiorentini
Top 25 IOT wld KP|Iotdomus Cofounder|LI Top Franch,Ret Mkgt,Startup Voice|Top 100 Global Influencers Franch|RS|Fraction|Teacher|Startupper|C UKConfederation|Uniexport Ret Ino|AMZN BSL author|Crowd Advisors PTR|9c shops
Today's fashions & traffic patterns change much faster than in the past So we need to know our ideal audience,our customers & what they really want We need to know all the tools for the best possible geomarketing research to understand where & how to open Many retailers make the mistake of thinking that the same street is good on both sides & along its entire length, but this is absolutely not true To find the perfect (or least vulnerable) location, we need to look at Demographics (local population) Their age Income levels/spending habits Psychographic information about potential customers Lifestyles/values & attitudes The best location is where our ideal customers shop,so they either live or work there, or pass through on a regular basis
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Rodrigo Barcelona
CEO aká Skincare
Definir y luego conocer al detalle el público objetivo es de los primeros pasos. A partir de allí verás si la ubicación física es un dato relevante o sencillamente es un agregado a tu producto (esta frase releerla al final). Actualmente el comercio electrónico va ganando terreno a pasos agigantados (especialmente pos-pandemia) y las empresas de delivery avanzan casi al mismo ritmo.. camino a la entrega sin personas (drones, etc.) o minimizando el recurso humano (aunque siempre estará presente). Quizás pensar en cómo estar presente en los ecosistemas que tu público objetivo frecuenta, de manera creativa, sea una manera de multiplicar el efecto de tu presencia física que será, a la larga, solo un dato más de tu empresa.
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Luiz Claudio Zenone
Coordenador do Curso de MBA em Marketing e Professor na PUC/SP
Pesquisar locais estratégicos com alto tráfego de pedestres e visibilidade. Avaliar acessibilidade, concorrência e perfil demográfico da área. Analisar custos operacionais, potencial de crescimento e negociar termos de contrato.
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Rob Hoosein
Customer Engagement | CEO @ DRH Group Inc. | Marketing Communications Expert
If you're hunting for the perfect retail spot, knowing your audience is crucial. Start by digging into the demographics—age, income, and what the locals are into helps a lot. Check out the area's foot traffic too; a busy spot often means better sales. See who else is around—having competitors close by can be a good sign, but you don't want it too crowded. Don't forget to chat with the locals at events or online to get a feel for what they might love about your store. And maybe run a survey to nail down exactly what they need. It's all about finding the right fit for your business!
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Ravi Kiran
4x LinkedIn Top Voice | Proven FMCG Revenue Growth Strategist | Visionary Sales & Marketing Leader | Trade Marketing Expert | Management Consultant | AI & Emerging Tech Evangelist
Start by understanding your target customer - their demographics, lifestyle, and shopping habits. Conduct thorough market research to identify high foot traffic areas with a concentration of your ideal clientele. Analyze competitors, looking for opportunities to differentiate and capture unmet needs. Consider accessibility, parking, visibility, and proximity to complementary businesses. Collaborate with retail-savvy commercial real estate agents who know the local market dynamics. Once you've narrowed down potential locations, meticulously evaluate each against your specific criteria. With careful customer-centric planning, you'll secure a prime retail spot that drives footfall and maximizes success.
Evaluating the competitive landscape is crucial when selecting a retail spot. Look around for businesses that offer similar products or services. A location with little to no competition might seem attractive, but it could also indicate a lack of demand. Conversely, an area with competitors can be beneficial if it's known as a shopping destination for your product category. The key is to strike a balance where you have enough presence to attract customers without being overshadowed by more established competitors.
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Federico Fiorentini
Top 25 IOT wld KP|Iotdomus Cofounder|LI Top Franch,Ret Mkgt,Startup Voice|Top 100 Global Influencers Franch|RS|Fraction|Teacher|Startupper|C UKConfederation|Uniexport Ret Ino|AMZN BSL author|Crowd Advisors PTR|9c shops
Today's market is phygital and an outlet is not equal for all seasons, so the main objective is to know how to find the right balance that will ensure we have enough local presence to attract customers without being overshadowed by more established competitors. To evaluate a new location and how best to do so, one must first observe the presence of companies-competitors with similar products or services. An area with little or no competition may seem attractive, but it could also indicate a lack of specific demand. Conversely, a catchment area with many competitors may be advantageous if it is known as a shopping destination.
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Rob Hoosein
Customer Engagement | CEO @ DRH Group Inc. | Marketing Communications Expert
To size up your competition, start by visiting their stores to see what they're all about—from their products to how they treat their customers. Don't forget to check out their online presence too; their websites and social media can tell you a lot about how they connect with people. Reading customer reviews can also give you the inside scoop on what's working for them and what's not. Compare their prices with yours to see where you can edge them out. And always keep an eye on what makes you unique—this is your secret sauce! Getting a handle on these points will really help you carve out your niche.
Logistics play a significant role in the success of a retail store. Consider the accessibility of the location for both customers and suppliers. Is it easy to find? Does it have ample parking or nearby public transportation? Also, think about the delivery and storage facilities; they should be efficient for restocking and managing inventory. A great location is more than just a busy street; it's one that makes the shopping experience convenient and pleasant for your customers.
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Rob Hoosein
Customer Engagement | CEO @ DRH Group Inc. | Marketing Communications Expert
When picking a location for your business, think about the logistics to make sure it's a smooth sail. First, check if the spot is easy to reach for both customers and deliveries. Visibility is key too; you want to be seen! Having good parking options can be a huge draw. Don’t forget to look into local zoning laws to make sure you can operate without a hitch. Also, peek into any future plans for the area—knowing what's coming can help you stay ahead. Getting these details right will set you up for long-term success!
While the perfect location may seem priceless, financial feasibility cannot be ignored. Compare the cost of leasing or buying different spaces, bearing in mind additional expenses like utilities, taxes, renovations, and maintenance. Your budget should align with your business plan's projections for sales and growth. Remember that a more affordable location with good marketing can sometimes outperform a pricey spot with natural foot traffic. It's about finding the right balance between cost and potential revenue.
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Federico Fiorentini
Top 25 IOT wld KP|Iotdomus Cofounder|LI Top Franch,Ret Mkgt,Startup Voice|Top 100 Global Influencers Franch|RS|Fraction|Teacher|Startupper|C UKConfederation|Uniexport Ret Ino|AMZN BSL author|Crowd Advisors PTR|9c shops
The ideal location does not exist & the cost of rent is a false problem (you can pay a lot of rent & collect a lot, just as you can pay very little & collect very little...) Of course, the perfect location may seem priceless, but it must be evaluated with a proper budget forecast, comparing the cost of rent/purchase with the additional expenses Utilities Property taxes Renovations and maintenance. This budget must be aligned with the sales and growth projections in the company's business plan. Can a cheaper location with excellent marketing produce more positive results than a more expensive location with its own natural foot traffic? Yes, because the right balance must be struck between potential costs & revenues (and not in one day...)
Before signing any lease or purchase agreement, familiarize yourself with local zoning laws, permits, and other legal requirements. Some areas might restrict certain types of businesses or have regulations that could impact your operation. Ensure that the lease terms are clear and fair, and consider seeking legal advice to understand all implications fully. A location might seem ideal, but if it comes with legal headaches, it could be more trouble than it's worth.
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Susan Coelius Keplinger
CEO at Force of Nature | Performance Marketing at Scale
Review zoning regulations, permits, and lease agreements to ensure compliance and avoid potential legal issues that could arise from your chosen location.
Lastly, think long-term. Your chosen location should not only meet your current needs but also accommodate future growth. Is there room to expand? Can the area support a larger customer base as you grow? The potential for scaling up without having to move can save you time and money in the long run. A strategic location choice considers not just where your business is now, but where it will be in 5 or 10 years.
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Mauricio Simão
Cofundador e Sócio da Agência Tribo desde 2001 | 🏅Partner Mentor RD Station | 🚀 Desbravador de Marketing Digital desde quando era tudo mato.
Escolher uma localização estratégica é crucial para o crescimento futuro de qualquer empresa. É essencial considerar não só as necessidades atuais, mas também o potencial para expansão e aumento de clientela sem necessidade de mudanças futuras, economizando tempo e recursos.
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Tanisha Preet Kaur, MBA
Marketing Specialist | DTC Retail Marketer | Boosting Brand Growth with Gamification & Sustainability | Ex-Hidesign | MBA Marketing
A retail store is cost-intensive, and before you can commit to it entirely, you can test out locations based on your audience's demographics with either of the small square footage strategies like, 1) Pop-up shops 2) Gallery exhibitions 3) Shop-in-shops Here, you might have a small selection of products but then have the option of 'Endless Aisles,' where you order items online for shoppers who visit a physical store—a great omnichannel retail strategy.
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