Finding the right location positions your retail shop for growth and impact.
We’ve all heard the saying: location, location, location. But is it true?
While innovative marketing, stellar products, and a great experience are essential, where you set up your retail shop matters a lot. A great location can capture more attention, attract customers, and build long-term sustainability.
You see, your retail location is more than an address. It’s a strategy. In this post, we’ll share:
- Why picking the right location is so important
- Strategies for finding the perfect spot
- Resources to make your location hunt easier
Let’s get into it.
9 Ways Your Retail Location Impacts Sales
1. Visibility: If your store is where many people pass by or visit, more people will see and remember it. This can lead to more customers walking in and making purchases.
2. Target Audience: The right location means you’re closer to the people who are most likely to buy your products. Finding and understanding your ideal customers and ensuring your store is located where they go can make all the difference.
3. Competition: Being near similar businesses can attract more customers because the area becomes a destination. But, too much competition might mean your store gets overshadowed.
4. Accessibility: If customers can easily get to your store, whether by car, public transport, or foot, they’re more likely to visit. Good parking and public transport links can be a big draw.
5. Rent vs. Revenue: While prime locations might be more expensive, they can often lead to higher sales, making the extra cost worth it. Conversely, a cheaper site with fewer customers might not be a good deal in the long run.
6. Future Growth: If an area is up-and-coming, getting in early can position your business for future growth. On the other hand, an area in decline could see your business shrink over time.
7. Community Engagement: In some areas, businesses form a part of the community. Being in such a location can lead to loyal customers who return repeatedly.
8. Safety: A safe, well-lit area can attract more customers, especially during evening hours.
9. Brand Image: Your location can influence customers’ perception of your brand. A high-end store isn’t a good fit in a rundown part of town.
Strategies for Finding the Perfect Spot
1. Do Your Homework
- Why It Matters: Begin with a big picture. Check out many areas, then narrow down potential areas based on demographics, foot traffic, and business prospects.
- How to Do It: Use online tools and maps. See where people hang out, what they like, and where businesses thrive.
2. Visit in Person
- Why It Matters: Nothing beats a physical visit. Observe the traffic, nearby businesses, and general vibe of the area.
- How to Do It: Take a day to walk around. See how busy it is, what other shops are nearby, and if the place feels right.
3. Talk to Locals:
- Why It Matters: Locals know the ins and outs. You’ll get a feel for how they might react to your business by talking to them.
- How to Do It: Go to community events or town meetings. Ask questions and see if they’re excited about a new shop.
4. Analyze Competitors
- Why It Matters: Other businesses can teach you a lot. See where they’re at, how big they are, and who their customers are.
- How to Do It: Go shopping.
5. Count Your Coins:
- Why It Matters: A great spot is good, but ensure it fits your budget.
- How to Do It: Have a clear financial plan from rent to potential renovation costs. List all costs. – like renting or fixing up the place. Make sure it doesn’t break the bank.
Resources to Make Your Location Hunt Easier
1. Online Demographic Tools To Get To Know Your Customers
With the availability of online market research tools, getting to know your customers has never been easier. These platforms provide:
- A goldmine of information
- Revealing details like age
- Income levels
- Even the shopping tendencies of potential customers in specific areas
Before opening your doors, these tools will give you a clear picture of the community you’ll serve. By tapping into the locals’ habits, likes, and lifestyles, you can fine-tune your offerings and store layouts to better match the community’s vibe.
More than just data, these tools can guide inventory decisions, marketing campaigns, and store aesthetics. For retailers, online demographic tools aren’t just a good idea; they’re essential for forging a deep connection with the community and ensuring store success.
2. Local Business Groups: Get the Inside Scoop
Diving into the world of local business groups can be like unlocking a treasure chest of community insights for retailers. These groups, often comprised of established business owners and community leaders, offer firsthand knowledge about the local market dynamics, customer preferences, and potential challenges.
By engaging with these associations, retailers can gain a nuanced understanding of the neighbourhood’s pulse, learning about past trends, current demands, and future predictions.
Beyond hard data, they also provide stories, experiences, and networking opportunities that can be invaluable when considering a new store location or refining store strategies. Simply put, joining a local business group is like getting a backstage pass to the community’s commercial ecosystem.
3. Retail Real Estate Agents: Find the Best Spots
Not all high-value commercial real estate is listed online. Some of the most impressive spots are hidden gems, mainly known to those with insider knowledge.
Of course, The National Association of Realtors suggests that specialized real estate agents, particularly those in retail, can increase the chances of finding a location that aligns perfectly with a brand’s needs.
With the right real estate agent, one specializing in retail can provide a competitive edge. Their niche expertise can introduce retailers to locations they wouldn’t typically consider, potentially leading to reduced rental costs or accessing an untapped market.
Your Retail Location Cheat Sheet
- A good spot means more people see your store and keep coming back, helping your business grow
- Being close to other stores like yours can be good and bad; you want to be seen but not hidden from them
- Making sure your store is where your ideal customers hang out can make or break your business
- People will return if your store is a big part of its local area
- Picking a good place for the long run can mean steady money instead of just a quick buck
Choosing the right retail location is a delicate balance of art and science. It demands vision, foresight, and adaptability. But, with the right research, walking the communities, and some creative thinking, you will find the perfect location.
Unlock Your Retail Potential with the Right Guidance
Choosing the perfect location is a significant first step, but equipping it with the best store fixtures and designs is what truly sets you apart. Enhance your retail space’s functionality and aesthetic appeal by tapping into the team at Canada’s Best Store Fixtures.