- Competitors’ nearby site.
- Investment funds available.
- In-store place (think pop-up stores and mall shops ).
- Supply and supply requirements.
- Shop facilities.
- Space design.
- Traffic resources.
- Client needs (such as parking, bus stops, and restrooms)
Advantages and Disadvantages of Store Locations
With so many options to choose from in real estate, business owners must assess the benefits and drawbacks of opening a shop in a sure location. Here’s a review of the most frequent places for retail, along with their advantages and challenges.
These are independent locations that are isolated from different stores. They are typically situated on the side of the street, near other independent shops or malls. Some examples include park kiosks, mom-and-pop stores, corner shops, and mini markets.
- Cheaper than average.
- Doesn’t share space with other competitions.
- Less rules concerning installation, shows, promotions, service times, etc..
- Less traffic.
- Parking area may be restricted or non-existent.
- Low visibility.
Natural/Unplanned Shopping Areas
These are retail clusters which have been growing over time and have several shops, which are separate from one another. A few examples of these clusters comprise downtown business districts, higher street locations, neighborhood business districts, and strip malls.
- High pedestrian traffic throughout the day.
- High resident traffic.
- Constant Vehicle traffic (because they’re usually located next to highways)
- More shoplifters.
- Higher demand for security systems.
- Restricted parking.
These sites have a huge range of retailers that are placed near an anchor store. The huge selection of options drives traffic. Some examples include malls, specialty markets, mixed-use developments, lifestyle centers, and outlets.
- High visibility.
- High traffic.
- Good parking accessibility.
- Dependance on anchor store (if it fails, the place might become a”dead mall”).
- Community fees.
- Pricier than average.
The Way to Analyze Retail Locations
In order to compare possible places, it is necessary to evaluate the features of each location in terms of:
- Catchment area (client traffic incidence )
- Main: 60% to 80% of likely customer traffic.
- Secondary: 15% to 60 percent of prospective customer traffic.
- Tertiary: Less than 15 percent or intermittent possible customer traffic.
- Occupancy Costs
- Lease vs. Purchase.
- Safety Deposit Amount.
- Property Taxes.
- Community Fees.
- Maintenance costs.
- Insurance costs.
- Service hours.
- Noise intensity.
- Product screen.
- Media screen.
- Marketing and promotional campaigns.
- State or county-enforced hours of surgery.
- Customer benefit
- Proximity to residential areas.
- Bus stops.
- Parking space availability.
- Parking costs.
- Client facilities.
- Nearest place of competitors.
- Potential number of customers.
- Potential product need.
Selecting the Appropriate Location (Step-by-Step)
Step 1: Create a situational analysis
Evaluate the potential location with all these questions as a starting point:
- Are there any similar companies in this location?
- Is the new place a new industry?
- Where’s our closest competitor?
Step 2: Examine your Market Demo
Using these questions, create or upgrade your target customer profile:
- Where are our clients located?
- How old are our clients?
- What is our clients’ profession?
- What is our clients’ income range?
- How can our target customers store?
- What sort of groups or affiliations do our clients take part in?
Step 3: Benchmark and compare alternatives
Using the comparison analysis clarified earlier, analyze the present available locations and confirm if there are some other possible options you haven’t considered. You may also assess the compromises you need to make while picking one place over another.
Step 4: Finalize the place selection
Get in touch with your realtor and shut on the location you’ve identified as the best match for your company. Once this place opens, keep track of its performance through indicators such as:
- Typical shopping cart.
- Revenue performance.
- Client traffic.
- Care and HR Costs.
How to use Erply to handle a retail chain
As customers grow and open new places, Erply provides them the option of adding and managing their places through the Retail Chain module. Some of the functions available include:
- Adding new addresses.
- Adding new places.
- Assigning price lists per place.
- Managing promotions per place.
- Creating, adding, and managing cash registers per place.
- Assigning employees per location.
- Moving inventory between locations.
By adding places to their Erply backend, business owners are able to standardize operations through different shops, and create performance reports specific to each location. Doing this will enable them to examine their place choice and gain valuable customer insights to inform their decision on launching a new shop.
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