Location, Location, Location
You’ve heard it before so this isn’t something new. But it can’t hurt to hear it again as a reminder. Location does matter when it comes to where your retail store is. This isn’t to say you need a Rodeo Drive address, but considering where you store is located is one of the biggest decisions and most influential decisions you can make for your retail business.
When considering where to locate your store, there are a few questions to consider.
1. Is the target market of your customer the same target market of the consumers in the neighborhood you want to locate your store?
2. Does the location of your store generate customers that walk by or is it in a destination location – meaning customers will have to go out of their way to get to you?
3. Are their other shops in the area that attract like-minded customers? For example, if you sell mid tier footwear, are their boutiques close by that sell apparel and accessories of complimentary price points?
4. Is getting to your store easy, whether by foot, public transportation or driving? How is the parking? For city stores, this can often be a costly variable. If it’s hard to park, this is a problem. Then again, if parking is available and it’s a destination shopping area, customers will come. Consider all the obstacles that may be in your way.
5. Does your location get noticed by potential new customers everyday? If it’s off the main path and on a side corner, you miss the chance of someone who may want to know about you not knowing about you.
Of course, there are many more factors to consider with cost being one of them. Make sure to consider the extra cost it may take to be in a better location than if you are in a location that isn’t so hot. If you figure you will have increased sales being in a better location, the cost should make up for the extra expense. You need to crunch these estimated numbers and determine what will be best for your business goals.
Don’t forget to consider your competition, as well. While it isn’t always great to be too close to your competition, if you are confident in your store, having your competition close by may actually help you.
Whatever location you decide on, make sure to also consider your lease options (unless you plan to buy your retail space). A shorter lease can be your friend if you are unsure how the location will do for you. However, a longer lease may open up the opportunity for a lower monthly payment. Talk to your retail space management to learn all your options and don’t be scared to suggest your own.
Finally, make the most of the space you choose! Consider the pros and cons so that you can maximize your business based on your location.
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Ted Hurlbut
Any entrepreneur opening a new store in this new environment has to be building their strategy around a very carefully defined niche of identifiable customers who share the entrepreneurs passion. With those considerations, the key to location is not necessarily a high profile, high traffic address, but a location with good acccess and parking. I don’t believe competition is as much of a consideration, because the niche should be unique and unfilled locally. Cost per square foot is definetely a consideration, but not as much as whether the space lends itself to creating the customer experience to reflect the shared passion.
Rose Alba
For first time owners opening their first store the definition of a “good location” can be foggy. From my experiance, my advice to anyone looking for a location is to make sure to find a location that not only seems to be busy by the indication of cars on the lot but that those visiting the plaza are your potential customers. Look around the businesses in the plaza and decide carefully if those customers will visit you too. Even though your target market is in the area it doesnt mean they visit your plaza. You may think as I did that a unit facing a main road, is a great location, WRONG. If it does not have parking in front of the unit, you may confuse your potential customers and lose the opportunity. In addition, the location you choose, should have similar businesses as yours. For example a retail store should be near other retail stores, not service type businesses. Don’t rush into anything when looking for the right location. All of these mentioneed are some of the things to consider and very important to the success of your business.
Anna
Location is Very important. I opened a baby & maternity shop on a side street just off the downtown strip. I thought that it would be a good location because my storefront was less than a quarter block from the main strip which was very busy with foot & driving traffic. After 1 year at this location we were ‘just’ okay. As it turned out the side street location did not afford us the opportunity to be seen by the passing traffic unless they were heading in one particular direction and stopped at the light…so anyone heading in the other direction or going through a green light, totally missed us. As for foot traffic, they seem to stay on the main strip, not turning to even look down the side street in most instances.
An unexpected situation occurred with our landlord and we needed to relocate. We ended up moving out on to the main strip, which was no more than 100 yards from the door of our old location. Ironically the new shop cost us 60% ‘less’ in rent and was 60% ‘larger’ than our side street shop.
Now that we are ‘on’ the main strip of downtown we can be seen from either direction and we are in the direct path of downtown foot traffic. As proof that we are in a better location now…within just the first few months our sales have doubled.
So in my experience I can say with confidence that location should be one of The most important things to consider.