Choosing the right location for your retail store can impact business success to a large extent. As a result, time and effort must be devoted to searching for a suitable place for your brick-and-mortar store. The location of a retail business can have a direct effect on sales and revenue, as well as visibility and longevity.
In no particular order, here are some key points to consider before settling for a retail store location.
- Target customers
- Nearby Businesses
- Location costs and budget
- Work-life Balance and employees
1. Consider your target customers
Since your business revolves around your customers, it is essential to pick a location that is central for them. If you sell luxury fashion items, then it is best that your store is situated in a mall in a high-brow area and if you deal in school items such as stationaries, your best bet is to set up in a place that has several schools around or hostels. Therefore, your target customers are determined by what you sell and they tell you where to be. All you have to do is observe each location you have in mind and compare them to see the one that has more advantages. At the end of the day, you want to make sure you are positioned where your customers basically live, work or study.
2. Consider nearby businesses
Obviously, there is a high probability that your business will not be the only one in the prospective location. In most cases, it is either the surrounding or nearby stores are compatible with your business or act as competition. For example, a haircare products shop could be successful next door to a hairdressing salon whereas a thrift clothing store might not be that compatible with a tailor’s shop close by.
3. Consider Location Costs and your budget
This is also very important because even if you find the perfect location, you might not have the money to rent the shop. Rent is not the only thing involved as there are other overhead costs such as electricity, water, security, etc. If you are moving from one place to another, determine sales from your former spot to help you know if you would be able to afford the rent in the prospective location.
4. Consider work-life balance and employees
Before you pick a retail store location, consider the distance from your home. To maintain a work-life balance, you should not choose a place that would make you spend so much money and time commuting on a daily basis. In addition, If you are going to hire employees for your retail business, it is advisable to stay in an area with good access to public transportation. Unless you are not going to hire people, it is important to plan your location around where employees want to work or can easily access.
5. Consider suppliers
While looking for the best location for your store, do not forget to consider your vendors and suppliers. Take retail stores that sell soft drinks and bottled water for example, it would be beneficial for them to be situated in a place where they can easily be supplied if not they may experience significant delays or run out of drinks. When going for a location, it is better to consider an option that will save you both time and money.
Choosing a retail business location is quite serious so ensure that you thoroughly think about your business and what you sell, your target customers, transportation and work-life balance, budget and costs and your suppliers. Take your time and research the area. An ideal location for a brick-and-mortar retail business should contribute to sales, revenue and visibility so take the time to analyze the areas and settle for the one that checks out all or most of the boxes on your list.