Have you finally decided to start your retail business, but aren’t sure how to decide on its location?
Maybe you’re trying to expand your brand but don’t know what the best next move will be for your newest storefront, or maybe the demographics of your current location have changed so significantly it may be time to find a new location.
As you search for the best location, you’ll want to consider as many angles as possible.
What types of goods you sell, what the traffic is like in the area, and the demographics there should all be taken into account.
While Silverman Consulting & Retail Services offers retail store closing sale consultant services, we’ve been involved in the retail world in one way or another for more than thirty years.
So while we’re experts on retail store retirement sales events and other store closing sales, we also understand what it takes to start and maintain a profitable retail business.
Whether you’re looking to run a store relocation sales event because you’re moving, or you’re starting a new retail business from scratch, there are important points to consider.
Let’s take a look at what they are.
What Type Of Goods You Sell
The type of goods you sell will factor heavily into your decision of retail store location.
For example, if your store is a convenience store, you’ll want to be in a location that is easily and quickly accessible for people walking by.
In that case, you’ll want to consider commuters as a huge part of your business decision.
If your goods trend toward specialty goods, you’ll have a different set of needs for your storefront.
People will be more willing to travel for specialty items, though you may also want to consider your proximity to other stores that complement what you are selling.
For example, if you’re planning to open an independent drug store, it might help you to set up shop near to a doctor’s office.
If you’re opening a big ticket store, you’ll want to make sure your store is in a safe location for customers and your business and staff where people are comfortable to shop and feel secure in making large purchases.
Ultimately, you want to make sure the location you pick will be accessible for the customer you’re trying to attract.
What Your Clientele Looks Like
You’ll want to really understand your clientele before making a final decision on your retail store location.
Study the demographics in the area you’re looking at so you can better understand the local needs and desires for businesses.
You should talk to other business owners in the area to get a feel for the scene.
Browsing community groups on Facebook or Nextdoor can also provide clues about your clientele.
As you do this research, you should be looking for information on the area’s population, median income, average age, and other demographic metrics.
How Accessible Your Location Is
Remember, you’re not just looking for lots of traffic near your storefront, but trying to keep in mind who will be a part of that traffic.
Keep your target demographic in mind, and don’t fool yourself into thinking that more traffic means more customers.
Here are some questions you should consider when thinking about your location’s accessibility:
- What is the volume of the traffic in the area?
- Is parking needed, and if so, is there enough?
- Is the parking easily accessible?
- What is the public transportation situation in the area?
- Is your store accessible for all, including persons with disabilities?
- Are there any long range developments or construction projects planned that may impede traffic in the area and to your business?
As well, consider the layout of your store.
Is it set up in such a way to permit you to merchandise and remerchandise your store?
Will you have the space you need to engage with the different types of retail shoppers that visit your store?
Whether There Are Complementary Stores (Or Competitors) Nearby
As stated before, considering the other retailers in the area is extremely valuable as you pick your location.
For example, if your store is high end, you’ll want to make sure you’re near other high end stores, because your customers will be looking for similar experiences.
Beyond that, higher end stores clustered together reduces the risk of shoplifters .
Non retail businesses can also be taken into consideration.
Will someone want to stop at your store after going to a spa or salon, or maybe stop in on their way to school or work?
Weighing these questions will help you pick your perfect space.
Just make sure that your location isn’t oversaturated by similar businesses to your own.
Too much competition will make it difficult for your new location to thrive.
Whether It Fits Your Budget
Cost is another heavy consideration while you pick your retail store location.
It’s not just your lease you have to worry about, but all of the costs that go with it.
Some questions you may want to consider include:
- Who pays for the upkeep and repair on the property?
- Do you need to cover remodeling when you move into the location?
- How much will the electricity and heat be, if you’re the one responsible for paying for that?
- How much will the property taxes be?
- Will you have to pay for available parking spaces?
Though it is difficult to make sales projections on a new business, you’ll still want to remember that what you can afford now and what you can afford down the line may not be the same.
To figure out what you’ll be able to afford in the future, try to get data on what businesses in your area make and how much they spend.
This will give you a rough guide as you build your business.
Other Considerations
Personal factors should also weigh into your final decision on retail location.
Distance from your home to your new store is an important consideration, as you’ll want to maintain an achievable work life balance.
You’ll also want to make sure that your landlord doesn’t restrict your independence with too much overhead.
As you plan for your future location, you’ll want to make a list of your store’s unique needs.
Consider questions like:
- What will the restroom situation be?
- What trash and sanitation services are available?
- Does the area have fire protection?
As you consider your business situation, you’ll be able to narrow down your choice of location.
Contact Silverman Consulting And Retail Services Today
The start of your journey into the retail business is a very exciting time, but eventually it will come to an end.
Whether that’s a few years or a few decades down the road, we can help.
Silverman Consulting &Retail Services can help you decide whether or not to close your business or whether you should sell your business instead of closing, and walk with you every step of the way as you prepare for the next phase of your life.
Contact Silverman Consulting And Retail Services Today.
Silverman Consulting & Retail Services229 Yonge St suite 400,
Toronto, ON M5B 1N9, Canada
1 (888) 955-1069