Introduction:
Opening a new and impressive retail store is exciting. However, before rushing into choosing decor and inviting customers, there is a crucial question that affects the success of your new store: Where will it be located?
With an average commercial space cost of $20.85 per square foot, the location you choose for your store is significant. Choosing the wrong retail location can leave you committed to a year-long lease and failing to attract heavy foot traffic, leading to losses in profits.
This guide addresses how to choose a retail location, with additional tips on how to make the most of your chosen space.
What is a Retail Location?
A retail location is where businesses sell goods in person. From independent standalone stores to shopping centers, the ideal retail location is in a high-traffic area where potential customers are known to shop.
Competition for commercial space is fierce. In 2022, American retailers opened two stores for every store that closed, with an average vacancy rate of only 4.6%. Finding the right location at the right price requires hard work. However, carefully evaluating the right place for your next store will pay off in the long run.
The Importance of Retail Location
Foot Traffic:
The more people who visit your store, the greater your chances of generating revenue. Your retail location plays a big role in that. Areas known for high foot traffic can allow you to reduce local marketing and heavy signage. An eye-catching window display can attract passersby who might not have been thinking of visiting.
Converting Store Traffic into Sales:
With Shopify’s mobile point of sale, you can serve customers anywhere in your store, avoiding lines at the service desk. Use any smartphone or tablet to process returns and exchanges, accept payments, and register customers wherever they are.
Community Engagement:
The COVID-19 pandemic has shaken how consumers interact with brands. One notable shift has been towards localism – a preference for and purchase of nearby local brands that support the community. Some retail locations have a stronger sense of community than others. For example, independent storefronts downtown have more local engagement than big box stores in crowded centers.
Supply Chain Impact:
A retail location is more than just a space for welcoming new customers. Use the stockroom in your new location as a storage and fulfillment center. Depending on certain locations outside the United States, we at Palaleather have successfully increased our ability to ship worldwide by carefully selecting a retail location in the early years of the company.
Types of Retail Locations
Traditional Retail:
Traditional retail is the most conventional type of physical location. Also known as independent stores or flagship stores, it is a type of building used by retailers to connect with customers in their own space.
Shopping Centers:
A shopping center is a place where customers come to shop. Typically spanning millions of square feet, it contains numerous stores – from big box stores to independent shops – all under one roof.
Shopping Centers:
A shopping center is a place where customers come to shop. Typically spanning millions of square feet, it contains numerous stores – from big box stores to independent shops – all under one roof.
Shopping Centers:
A shopping center is a place where customers come to shop. Typically spanning millions of square feet, it contains numerous stores – from big box stores to independent shops – all under one roof.
Shopping Centers:
A shopping center is a place where customers come to shop. Typically spanning millions of square feet, it contains numerous stores – from big box stores to independent shops – all under one roof.
Centers
Shopping:
A shopping center is a place where customers come to shop. They typically span millions of square feet and contain many stores – from big-box retailers to independent shops – all under one roof.
Shopping Centers:
A shopping center is a place where customers come to shop. They typically span millions of square feet and contain many stores – from big-box retailers to independent shops – all under one roof.
Shopping Centers:
A shopping center is a place where customers come to shop. They typically span millions of square feet and contain many stores – from big-box retailers to independent shops – all under one roof.
Shopping Centers:
A shopping center is a place where customers come to shop. They typically span millions of square feet and contain many stores – from big-box retailers to independent shops – all under one roof.
Shopping Centers:
A shopping center is a place where customers come to shop. They typically span millions of square feet and contain many stores – from big-box retailers to independent shops – all under one roof.
Shopping Centers:
A shopping center is a place where customers come to shop. They typically span millions of square feet and contain many stores – from big-box retailers to independent shops – all under one roof.
Retail Location Strategy
Monitoring Competition:
Of course, busy shopping centers have hundreds of stores. But competition is not always a bad thing. The location your competitors choose for their store may have been carefully thought out. Look at their reasons for being there.
Testing Locations with Pop-Up Retail:
Not ready to move into a permanent store? Test various retail locations before committing to a specific space using temporary retail options such as food trucks, pop-up shops, kiosks, art galleries, local markets, or fairs.
Utilizing Retail Locations for Fulfillment:
Choose a retail location near your customer base and consider the store as a fulfillment center to offer mixed shipping options such as buy online, pick up in-store, local delivery, or curbside pickup.
Reducing Store Size with Multi-Channel Retail Strategies:
Retail spaces in busy areas can often be very expensive. But that doesn’t mean you should completely rule them out. Reduce the size of your store – and thus the space you’re paying for – with multi-channel retail strategies such as showcasing goods in a showcase and endless aisles. In both cases, the shopper visits your physical store and browses a small selection of products. But rather than taking the item with them immediately, customers either pay in-store and have the product delivered to their home or send themselves a shopping cart containing the products they browsed ready for purchase at home.
Finding the Right Location for Your Retail Store:
The process of expanding your retail business can be overwhelming. Whether you choose downtown or a shopping center, use these tips to find the best location for your next store. Remember: the goal is to place your store in the best position to attract potential customers in the local community. Sell your products online and in-person using Shopify.
Frequently Asked Questions About Retail Location
What are the different types of retail locations?
Brick-and-Mortar Store: A traditional physical store where customers can come to shop and purchase products. Online Store: An e-commerce platform where customers can shop and buy products online. Pop-Up Store: A temporary store that is open for a short period of time, usually in a high-traffic area. Kiosk: A small standalone booth where customers can purchase products or services. Supermarket: A large grocery store that typically carries a wide array of food items, beverages, and other household goods. Convenience Store: A small store that is open late at night, typically in a high-traffic area. Department Store: A large store that carries a variety of products and brands in different departments. Discount Store: A store that sells products at a reduced price. Outlet Store: A store that sells products at a reduced price directly from the manufacturer. Specialty Store: A store that specializes in a certain type of product or service.
Why
Is the retail location important?
The retail location is important because it determines how easily accessible your business is to potential customers. The location may also affect the foot traffic your store receives and its visibility in search results. Additionally, the right location can help create a positive experience for customers, as they may be more likely to visit a store that is convenient for them.
What are the factors of retail location?
Retail location factors are the elements that determine the success of a business in a specific geographical area. These include:
- Proximity to target customers
- Accessibility of the location
- Store visibility
- Population distribution in the area
- Local competition
- Cost of rent or lease
- Public transportation
- Availability of parking
- Real estate zoning laws
- Crime rate in the area
- Local taxes and regulations
How can I choose a retail location?
Conduct research on the area: Research the area to identify the type of customers present, their average income, and local competition. Look at visibility: Assess the visibility offered by the location in terms of traffic flow and pedestrian activity in the area. Analyze rental costs: Determine whether the rental cost fits your budget and consider any additional fees that may apply. Look for amenities: Search for amenities like parking, public transport, and other services that can help attract customers to your store. Consider the future: Think about the area’s potential in the future, as well as the possibilities for expansion and growth.
Source: https://www.shopify.com/retail/online-to-offline-brands
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