When you are seeking to make your ‘entrepreneurial debut’ with a retail shop, the first important decision to make would be choosing the location of your shop.
You could either opt for something that is in the middle of a bustling city, which will have expensive rent or, select a location that is in the suburbs and would not be so heavy on the pocket. However, it must be noted that you would have to spend considerably on advertising when it comes to a retail shop in the suburbs, vis-à-vis a shop in the city which would have comparatively more visibility. The other crucial deciding factor in the location of your retail shop is the presence of target customers.
Here are some detailed tips on what locational factors should be taken into account before opening a retail shop.
Locational Factors You Should Consider While Opening A Retail Shop
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The products you wish to retail/type of store
Before deciding on your location, it is important to gain clarity on the products that you wish to sell and the kind of store you wish to establish.
It could be anything from a small kiosk to a convenience store, a specialty store or a big-ticket store. Hence, if you are keen on selling convenience items, then a small kiosk located inside a shopping mall would not be a great location choice in terms of accessibility and price.
On the other hand, the optimal location for convenience stores is usually on the way to commute for a customer, as shopping at such places becomes a convenient activity. On the other hand, a specialty shop usually has curated, high-priced goods that do not feature on regular shopping lists of customers. For such shops, the best location would be someplace that would place them away from their competitors, so that comparisons are not made.
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Assess the demographics of the area and know your potential customers
It is important to choose a location that is inhabited by the right age bracket of people who can invest or purchase the goods you sell at your retail shop.
A good way to understand this would be to conduct a thorough survey or research of the area and assess the type of businesses and shops around your proposed location. Get an idea of the demographics and the average incomes. This is most important if you are out to open a specialty or a big-ticket retail shop with luxury goods.
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Check out the rental costs of the location
If your retail store is selling luxury products that require a niche customer base, then it would be prudent to open a shop in an upper-class, elite location. The rent would be obviously higher, but it can be set off by the fact that you are in the middle of your target customers and would potentially do great business.
Visibility and accessibility of your retail shop
For retailers, the ideal location is in the middle of their target customers. However, there are various factors that should be considered nonetheless.
Firstly, check to see if the area is accessible to those taking public transportation or if there is enough car parking available. Visibility of the retail shop is equally important as it ensures a steady flow of customers and reduces the need for expensive advertising.
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Availability of workforce
It is important for you to opt for a location which is accessible to prospective employees of your shop. Check to see if the shop is at a proximate distance to essential services like hospitals, restaurants, schools etc.
Keep a distance from competitors and locate near aligned shops
Zeroing in on a location that is teeming with competitors is not a good idea, especially for speciality stores, as it tends to hurt the business. Rather, ensure that your shop is located near shops that attract a similar customer demographic as it will be more beneficial. An example to highlight would be a high-end furniture shop located near a designer upholstery store.
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The best location for your retail shop should be one that is close to your home, as the comfortable commute time will help you maintain a healthy work-life balance.
The perfect choice for your location would depend on all these factors and any wrong selection could be detrimental to the success and growth of your business. Indifi is the answer if you are looking for the best solution for finding the perfect location for your retail shop.
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