Tag: retail

Looking For A Retail Location Location Location?

Looking For A Retail Location Location Location?

You’ve taken the plunge.  You’ve decided to open a retail store selling products you love and know a great deal about.  Whether you’ve already run an online store and are complimenting your brand by adding a brick and mortar store or you want to open brick and mortar store followed by opening an online store.  Either way, both are important to your brand.

A retail location is just as important as an online presence.  Why?  See my other article on the importance of brick and mortar retail locations.  A retail location is necessary to bring brand awareness to your location.  Choosing your location is the most important aspect of your retail store.  Chances are you will be leasing the retail space and may be locked into a multi-year deal.

Geographic Location

What is your genre?  What do you sell?  It is extremely important to choose a location that will help your sales based on the products you sell.  For example, if you’re opening a surf shop, you may not want to open your store in colder climates.  A surf-type shop is seasonal in those cold climates which means you would only generate sales for a few months out of the year.  Your surf shop should be in California, Florida, Hawaii, etc.  So, choose a geographic location where you know you will generate sales 12 months a year.

Traffic

The next important aspect in selecting a great location is traffic.  You’ll need to choose a store location where there is a lot of traffic.  Traffic comes from all different methods.  Whether it’s people driving by or wandering in because they were in a near-by store.  The most important traffic is targeted traffic.  The more targeted traffic you can get, the better.  If your retail store sells women’s clothing, you wouldn’t want your store next to an auto parts store.  Most women are not going in and out of an auto parts store which could drive that traffic to your store.  However, moving next to a boutique would definitely help drive traffic to you.  This is what I call spill-over traffic.  Spill-over traffic is very good and you will get plenty of it when close to a store that will compliment your offerings.

Competition

Competition is huge in nearly every market.  There’s just too many people in the world to think you are the only person selling the same type of products as you are.  When I say competition, we are talking another store that sells the same products or the same type of products that you are selling.  When selecting your retail location, you don’t want your competition next door.  You’re going to need to do some research, or as I like to call it, reconnaissance (recon) work.  Find out who your competition is and how close or far they would be to your potential store location.  Most shoppers stay within a 10 mile radius to their homes, so stick with a 10 mile distance from the nearest competitor.

So, let’s recap.  When searching for that perfect retail store location, make sure you pick a geographic location that is suitable for selling 12 months of the year, make sure you choose a location where there is plenty of targeted high quality traffic, and make sure your competition is at least 10 miles away.  Follow those 3 rules and you’ve got your perfect store location!

 

If you are selling on any of these sites (Amazon, Ebay, Shopify, BigCommerce), you will need this profit reporting software.

SalesChannelReports.com