Factors To Consider When Choosing The Best Location For Your New Retail Business

Real estate

In spite of the rapidly increasing pace of digital enterprise and technology, there will always be the need for a brick and mortar store, whether it is just to accommodate your workforce, store your products in a safe warehouse, or create a physical presence for your brand. The place you choose to locate your new retail business could have a major impact on every activity your shop does. The difference between choosing the right location and wrong site should be the difference between business success and failure. Before selecting the best location for your new retail store, it is important that you define the way you see your business at present and for years to come.

Can you visualize the building your business shall be in? How are your customers like? Are you aware of what you intend to sell and what you want people to know your business for? Have you established the amount of storage area, size or the size your business will need? With no answers to these basic questions, it will be difficult for you to find the ideal location for your retail business to generate maximum profits.

Accessibility

Will your retail store rely on very frequent deliveries? If this is the case, then it is essential that you take into account local transport networks, especially motorways and main roads. Property purchase and rental prices are usually higher in high density and commercialized areas hence there are also some cost benefits associated with going for a more out-of-the-city location provided your business operations will not be affected by the poor transport links. Similarly, if your business will rely on a high customer footfall, you will need to ensure that your location can be accessed by train, bus, and car. Do not forget about your employees as well since a good business location is usually an important factor in bringing in the right workforce to your business especially if they have received several job offers and must evaluate the advantages and disadvantages of each.

Type of Goods

When setting up a retail store, it is imperative that you examine the kind of products you will be dealing with since some goods will need specific types of locations. Would your business be considered a shopping store, specialty shop, or convenience store?

Convenience goods will need easy access so as to let customers make a quick purchase. For this reason, a mall would not be the ideal location for convenience goods. This is a product type that is usually lower priced and bought by an array of customers. Specialty goods, on the other hand, are unique that a majority of products and most customers will not mind traveling long distances to buy such products. This kind of store will obviously do well in close proximity to other shopping stores. A shopping store on the other hand typically sells items at higher prices and the items are not frequently bought. Upscale clothing, cars, and furniture are good examples of items which can be found in shopping stores. Since prices of such items are usually higher, customers will want to compare prices before they can make a purchase. Therefore, it would be a good idea to locate such a store near similar stores.

Accessibility, Visibility, and Traffic

When setting up a retail business, it is always important that you do not confuse a lot of traffic for many customers. A majority of retailers will want to have their store located in areas with many shoppers but only if the shopper meets their definition of target market. Smaller retail stores have a higher chance of benefiting from the traffic of the nearby large stores. Ask yourself, how many people drive or walk past the location? Is the location served by a public transport network? Is there sufficient parking? Can delivery trucks and customers easily leave or get into the parking lot?

Depending on your business type, it would be a good idea to have 8 to 10 parking spaces for every 1,000 square feet of space. When you think of visibility, it is important that you look at the location of your retail business from a customer’s viewpoint. Is your store visible from the main flow of traffic? Is your sign easily visible? More often than not, the better the visibility of your store, the less advertising you will need. For instance, a specialty store that is located five miles from town and in a free-standing commercial building will require more marketing as compared to a shopping store in a mall.

Competition

Your business’s proximity to other competing business is crucial to its success or failure. Proximity to other competing business could provide numerous benefits to your business or cause a hindrance to your business. Knowing the competitors who are in your area and what they are offering could aid in helping you select the right location for your new retail business. If the competition is too much, then it should be obvious that you should consider expanding your horizons to a different location. However, there are some exceptions to this, like car dealerships who will want to be in close proximity to each other since customers like to compare car prices before settling on the best deal. Similarly, if the item you are offering is completely unique or provides a new level of innovation, then selecting an area with a ripe market could be the best way to pick up customers fast and establish your presence in a new location in a short time frame.

Potential for Growth

Will the location you choose for your business be able to accommodate a spike in demand or business growth? You need to decide whether the location you are selecting is a short-term location or if you intend to stay there for years. Consequently, your business location’s flexibility might be a crucial factor with regard to the premises’ suitability for all your business needs. To check out retail properties for sale, click here.

Do not feel rushed into making the decision on where to locate your new retail business. You need to take enough time, research the particular area, and have patience. If you have to push back or reschedule your store’s opening date, then do not hesitate to do so. The wrong location for your store could have devastating results in the long run.