While the saying “Location, Location, Location” has become well known in relation to residential property. It is a saying that is worth paying attention to in relation to location a retail business. For the large majority of retail stores, the location is going to make or break the business. Getting it wrong can spell disaster quite quickly, where getting it right may lead to fantastic success.
THE ONE EXCEPTION
There is but one exception to this rule of getting the right location, that is the destination store. The destination store is best described as a store that people want to visit because it is the biggest, or the best, or it is a one of a kind store. In other words, once people within the target market hear about the store they will go out of the way to visit it. While for the most part the location doesn’t matter, of course there is still some loss by not having the best location.
WHY IS LOCATION SO IMPORTANT
The best way to explain why location is so important is with a small example. Take for example if there was two shoe shops on the main street of a town. The majority of the shops are located in a two block stretch that, which is where one of the shoe shops is located. The other shoe shop is located two blocks further down in a building with just one other shop. Assuming that no other marketing then a sign on the footpath was used, which do you think would get more business. Almost without a doubt the shoe shop that is located in the main shopping area. But the key question is why, which can be answer by foot traffic, level of marketing, and convenience.
For any retail business the passing traffic is one of the biggest sources of leads. If you have 10,000 people walk past your business per day you have going to have many more potential customers walk into your business then if you had just 1,000. In the above example the numbers may be differ depending on the town, but this is the sort of comparison being in a good location where a lot of people come to, as compared to a little bit off the main shopping area.
LEVEL OF MARKETING
The level of marketing that is undertaken by a business often will be in some proportion to the location they have. While marketing is essential for every business, the location of the business will to some degree dictate the actual level of marketing needed. So in our example while a sign on the footpath may be enough for the shoe store in the main shopping area, for the other shoe store that is no where near the other shops, the sign on the footpath, may not even gain them any customers. Really marketing is the most important thing for a business located a little off the beaten track, because really how is anyone going to know you are there otherwise.
As soon as you start a business that is in a prime location you have the advantage that you become convenient for people to purchase from you. While if you are located away from everything it becomes more difficult for people to find you, to get to your business and most importantly it requires extra effort which they may not be able to justify when making a purchase.
These are just a few of the considerations that you need to make when getting the location for your retail store. While the actual keys for each one may vary a little from area to area, as for example an area that has two main shopping areas, may still have differences in foot traffic and one may not be as convenient as the other, but taking the basic idea from these three points gets you much closer then if you were to just randomly jump in without any consideration.