If you’re looking to launch a new business in a brick-and-mortar store, choosing the right retail location is vital for your success. After all, no matter how great your retail space looks or your product is, your business will fail if you don’t have any customers coming into your store.
When you’re setting up, buying a new business or expanding an established one, the costs feel as though their mounting with no sales in sight. It’s common for businesses to make the mistake of falling for low rent on a retail space. This has the potential to destroy your business before you’ve even celebrated its launch.
It’s also common for new businesses to be put off by high retail rents. If it’s the location and prime foot-traffic that’s driving the higher lease, it’s a positive and in most cases, necessary investment.
There is however, more than just rental price to consider when you’re looking for a retail-leasing hotspot. Read on for our top tips on choosing the right location for your retail business.
1. Does the location suit your product?
Consider the product you’re selling and analysis if it suits the location of the retail space. Where would your ideal customer look for your goods?
For example, if you’re selling office supplies, you’re better off being in a central location near office buildings rather than a shopping mall. If you’re setting up a convenience store, you’ll want to be in a location that allows customers to quickly make a purchase on their way to somewhere else.
Look at the location for your prospective customer’s point of view with consideration of the types of products you’re selling.
2. Does the retail space fulfil your customer’s needs?
Create an image of your ideal customer. Who are they? What’s their profession? Where do they live? Where do they shop? What are their needs?
When you have a good picture of your buyer, consider how your retail space fulfils their needs. For example, if you’re selling baby goods you’ll want your space to accommodate parents with prams and other children. For a store that sells large furniture or homewares, a retail space that allows for access is essential.
Finding a retail space that meets the needs of your customers will make it much more desirable for them to return.
3. Where is your competition?
The last thing you want to do is open a retail space in the near vicinity to a competitor or in an area where a brand-new shopping centre is being built. If you’re clever, the location you choose will help your retail shop succeed rather than derail your business. For example, if you own a jewellery store, your business is far more likely to be successful next door to a women’s clothing shop than a newsagent.
4. Are you able to advertise your business onsite?
When deciding on a retail store, consider your ability to advertise your business onsite. Are you able to display signage to promote your shop and the products you sell? Can you put out a sandwich board that will help draw in foot traffic?
Advertising your business to generate new customers is expensive, especially for a start-up. If your store is in a great location with plenty of exposure to the public, you can funnel your money into less expensive ways of marketing your business. A referral or rewards program can be a great way to encourage repeat business and create a strong rapport with your customers.