Where to open up your new retail store? And which place can attract your customers and make your business prosper? These are all the questions that require careful judgment and decision-making. Even though we live in a fast-paced world, one misstep can take us by surprise and be our downfall!
It’s simple. Your location should be where your customers are! Whether you have a T-shirt store in San Bernardino or an activewear shop in New York, it should have easy accessibility. It would help if you had a presence that leaves an everlasting impact on your customers.
What To Look For?
The place where your shop is situated plays an essential role in attracting customers and making sales. Here are some aspects to consider before opening a retail shop:
Choose a location where there is high foot traffic. Foot traffic is where people exchange items and do daily transactions. And you would want a place that people visit frequently. Further, your job is to monitor daily traffic flow and study the buying and exchange patterns.
A lovely window display can attract passersby’s attention. Therefore, display your products creatively to encourage customers to buy from your shop!
In addition, consider season and foot traffic together. During cold weather, people might not frequently visit the area; however, summers can differ.
You must look at two perspectives on this. The first viewpoint is customer-centric. Will your customers easily find your store? If so, how long would it take for them to reach you? Is your location too far away from your competition, making the customers choose them over you?
Another perspective is employee-centric. You need the store up and running with the right salesperson and a store manager. And your shop needs to be near your employees’ residences to reduce their commute time.
Next is to study your target audience. Businesses fail because they do not hit right on the nail, in this case, not reaching out to the right market. Only the correct demographics will buy your product as it becomes tiring and costs you a lot to persuade the incorrect ones.
For example, if you sell a luxury brand, then selling it near the middle to low-income houses would be incorrect and condescending. It is best to analyze the target market in particular and the audience in general in the neighborhood before opening a retail store!
- Buying Power
You will make sales when a customer wills it! It means that your customers have enough money in their wallets to buy your products. Identifying the price range your customers lie in before setting up a store would be best.
Carry out thorough research on buying patterns of your audience. Next, price your products accordingly to increase your customer base.
For example, if you cater to a high-income class audience, your shop should not be around low-income ones and vice versa.
- Zoning Regulations
Zoning regulations differ with the area. Some may have restricted hours of operation, while others will have a different nature of business. For example, you cannot open a clothing retail shop in the suburbs. It would be best to have it in a commercial area with considerable foot traffic.
Additionally, you would also want to look into logistics and warehouse zoning. Your store must be away from the warehouse, not too far, so you pay hefty fuel prices!
Ultimately, everything depends on whether you can afford the shop or not. No matter the ideal location, if the price is too high, you would discard the idea of a shop. Additionally, you must know whether the space needs remodeling or is ready for move-in.
For example, if you have a T-shirt store in San Bernardino, get to know the current rent on an 800 to 1000 sq feet space. Additionally, get to see the mall space and downtown store rent requirements.
Of course, setting up a shop near your competitor is quite challenging. In this case, you would want to bring some value to your products that shift the customers to your shop instead of your rivals. Usually, retail shops that compete need to be away from each other.
However, if two retail shops are near each other, it is because of the similarity of the products they offer. For example, you would find this adjustment in shopping malls where competitors are close in proximity.
But, the best practice is to avoid the competition and choose a location where you have a monopoly or simple competition.
Lastly, it would help if you also considered parking options. If you want to retain customers for a long time in your store to influence their purchase, then they should have a parking spot. A car-friendly location is essential; therefore, a place is ideal if cars can be parked free of cost.
Moreover, customers tend to buy from shops that have near parking spaces. Therefore, analyze if your customers must walk aplenty before they get to your store!
A prospective retail store is near customers, has less commute time, has adequate parking space, and follows zoning regulations. Consequently, retailing is about giving customers value propositions that can influence them to purchase from you. It is time to make wise decisions because time is money, and you cannot afford second chances in this competitive market!