How to Pick a Good Retail Location
Choose the right retail location and you're 90 percent closer to running a successful operation. But if you pick a poor one, the chances of your failing rise exponentially. There are things to know that will make it easier to find just the right place for your retail business, even though the most experienced retailer can make the mistake of being at the wrong place at the wrong time.
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Instructions
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Understand the audience you plan to serve and how many of them live in the area of the location. Determine if those people will walk by your store or drive. If they drive, make sure there is adequate parking in the area. Find out if your target group is growing as quickly as you want your business to grow. Finally, make sure the target group is financially able to afford what you sell.
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Make sure your target audience comes to the area during the times that you plan to be open and that they shop rather than simply browse. This is important, because a mall location may deliver just the right audience, but many people there are just window shopping or meeting with their friends.
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Determine that the location under review is accessible to your target group. If it is not, determine what it might take in extra marketing costs to attract those individuals. If your direct competition is not hampered by such a problem, consider another location.
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Discuss your intention with other retailers in the location's area because they generally will share information with you. For instance, many retailers seem to do well in malls, but you may learn they do not because of the high rents and charges they must pay. Or they might share information about when are the busiest times, how much people spend and other useful information.
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Check out your direct competition. Find out how much they rely on location. Try to figure how you can best compete with them, whether it be by offering your customers a broader product line, lower prices or better service. Then you can overlay that information on your choice of location.
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Think about using a retail property consultant if you lack the necessary experience to make final location decisions or to negotiate the terms of the lease. As a retailer, you should stay focused on as many retail locations as possible.
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