Finding the Best Location for a Retail Shop

For retailers, location of the store is a critical element.  Owners should first determine their target niche market and decide where to find a viable location for their business.

A business owner from Fairfax, Virginia asks how to determine the best retail shop location.  The business owner wanted to open an athletic shoe store offering high end brands.  Apparently, the owner has considered several locations such as malls, train stations, or outlet malls.

Location is Critical for Business

For one, location is critical for every retail business.  This is probably the most important business decision that a retailer should take.  The business owner is correct in considering lots of good places and giving the matter due attention.  

As start, business owners need to determine who will be their customers.  For the question at hand, the owner should answer if the business will cater to serious runners.  The owner should also consider if the store would like to attract student athletes or general shoe shoppers.

For retailers, it is important to note that the more mainstream their products are, they should expect lots of competition.  This means that business owners should co-locate their businesses against those of their competitors to establish a challenge and become a contender in the market.

On the other hand, if the retailer shop would carry specialized items, then the business would become a destination hub.  In this case location should be closer to the target customers and not more on positioning near the competitor.

When the owner could narrow down their niche customers, then they can proceed to check where their customers reside.  The US Census data could be a useful source in this endeavor.  Owners can also buy reports, data graphs, and location analysis from business location consultants.

Owners should select a location that can be easily accessed by their target customers.  Visibility is also important in order for the business to get noticed.  It is critical also to locate the business where there is huge concentration of target customers.

Marketing as Part of Location Hunting

Small businesses that do not have a franchise affiliation should also consider launching a local marketing drive to make an impact on the community.  The location of the business will also affect business fundamentals as it will have an impact on the budget and business plans.  

Projections of profit against the rental for the outlet should be carefully computed.  After calculating the costs and expenses for the business location, the left over capital should be allotted for advertising and marketing. Thus it is important to study the cost benefit of location in order to make marketing design.

The type of location such as malls, outlet malls, station terminals, will be determined by the business’ target market, brand, and budget.