The brick and mortar location of a retail business is perhaps the most crucial decision an owner will make. The difference between a good and bad commercial location could potentially be the difference between making or breaking the business. There are multiple factors to consider when deciding on a suitable spot for a retail outlet that ranges from rules and regulations to customer needs, the target demographic and brand image and requirements.
These are 3 priorities to consider when searching for the perfect retail space to set up shop
Nature of Business
The smooth functioning of the back-end of a business will help translate to a confident front. It is essential to have a comprehensive understanding of the on-the-ground operations involved in selling the product/s at hand. For example, processes used in the supply chain, to run a multi-purpose, convenience store would be very different from those used to run a specialty store.
Apart from the logistics, it is important to research the rules and regulations pertaining to the business. Certain kinds of stores can be set up only in certain commercial locations that are already stipulated by the concerned government. The city’s zoning regulations, laws, and taxes, with respect to the retail outlet, must all be clarified before settling on a final retail space, to avoid any unpleasant surprises.
Customers and Employees
It goes without saying that a retail location needs to be selected keeping in mind the target customer demographic. However, the workforce to be employed is equally important. Their commutes and working environment are an important factor, to ensure a committed team that will help sustain the retail outlet on a long-term basis.
Adequate parking, visibility and the ease of access for customers are directly responsible for the footfall in stores. Depending on the nature of the outlet, it could be even better if the store is conveniently located and easily accessible by public transport.
Image and Competition
A brand’s attitude and image are what set it apart from its competitors. The appeal of a retail outlet cannot be separated from what the brand stands for. Whether it is the way in which the staff behaves or dresses, the quality of the shopping experience or the clarity of the signage inside and outside, these are all factors contributing to how customers perceive a brand’s image and identity.
When selecting a retail location, one must also evaluate the businesses surrounding the area in question. A careful consideration, of whether they will be complementary to the business or just unhealthy competition, must be made before sealing any deals.
There is no marketing strategy that better compares to having a renowned reputation that has spread simply by word of mouth. It will ensure that buyers flock to a brand online or off. But an apt, thoughtfully picked retail location will undoubtedly add more value for money.