One of the most critical steps in launching a retail business is choosing a location. The wrong location will negate all of your hard work by discouraging customers, but the right location will help you move product more easily and in less time. Whether your store sells apparel, jewelry, groceries, sporting goods, pet supplies, convenience items, or any other consumer product, you need to carefully choose the best possible location. Keep reading to learn 5 important tips on how to choose the right location for your retail business.
Tip #1) Target Your Customer Demographic
When choosing a location for your retail business, pay close attention to the surrounding demographic. Ideally, you want to match your store’s target demographic with the surrounding locational demographic. For instance, retail apparel stores that focus strictly on women’s apparel would perform the best in a location with a higher ratio of females to males. Performing a little research into the city’s demographic should reveal this information and more.
Tip #2) Check The Competition
There are both pros and cons to muscling a retail business into a highly competitive area; the good news is that competition is usually a sign that business is thriving, but the bad news is that heavy competition can eat into your sales. If you’re going to open a store in a city or region with similar competing businesses, make sure you space yourself out far enough to minimize their impact.
Tip #3) Lease Pricing
Of course, you’ll also want to pay attention to the lease price when choosing a retail business location. Lease prices vary dramatically depending on a number of different factors, and signing an agreement for an overpriced store location could place a heavy financial burden on you business before it even opens. Shop around and don’t be afraid to negotiate with the owners to see if they’re willing to drop their lease price.
Tip #4) Easy To Find?
A fourth tip that’s helpful when choosing a retail store location is to make sure it’s easy to find. If you’re having a difficult time finding the location, chances are customers will have an equally hard time as well.
Tip #5) Main Roads
This fifth and final tip kind of goes hand-in-hand with the fourth tip listed above. Retail stores tend to perform best in busy areas around main highways and roads. When you start forcing your customers to take multiple turns and back roads down obscure alleys, you’ll naturally lose some sales. Make sure your retail store’s location is set around a main road or highway that’s easy to find.