Page 108 - DMGT550_RETAIL_MANAGEMENT

Unit 6: Financial Strategy and Retail Locations

Choose a Growing Area: In addition to knowing the population of an area, be sure to research Notes
the growth that is taking place, in terms of both residential population and number of business
establishments. Look for new construction of subdivisions, office buildings, shopping centers,
etc.
Consider Customer Convenience: The flow of customers into, throughout, and out of your store
should be easy and convenient for the customers. Without proper planning, it is easy to design
your location for the convenience of owners, store operations, and employees without taking
customer satisfaction into consideration.
Consider the Parking Situation: Not only should there be plenty of parking for your customers,
it should be convenient and safe. Customers tend to want to park very close by your entrance
and are concerned about remote and poorly lit parking areas. Also, be sure the parking lot is
level, smooth, with well marked spaces and arrows indicating flow of vehicles. Make sure
customers have plenty of room to park and to maneuver.
Beware of Curves: Locating on a curve can make it difficult for approaching vehicles to see your
business from very far off. By the time they see your business, it may be difficult and even
dangerous for them to stop and turn into your location.

This is particularly true of locations on the inside of curves. And once they have passed you,
they are unlikely to turn around and come back due to the inconvenience.
Beware of Dead Ends: Dead end roads mean there will be less traffic moving back and forth in
front of your location. And a no-outlet dead end road reduces traffic even more and is an
inconvenience for potential customers.

Beware of One-Way Streets: Locating on a one-way street exposes your business to the traffic
traveling in only one direction. In addition, it will be more difficult for your potential customers
to access your location.
Choose the Correct Side of the Street: Consider which side of the street may be more beneficial
to your particular type of business. Learn about the traffic patterns in the area. Evaluate your
customers’ habits and determine whether your location should be more convenient for persons
traveling to work, from work, or to run errands and accomplish shopping goals.

Note After identifying several sites for locating a retail store, the next important
step is to understand trade area characteristics.

6.9 Evaluating a site for Locating a Retail Store

In making this decision, retailers consider the following three factors:

1. The characteristics of the site.
2. Trading area characteristics.
3. The estimated potential that can be generated by a store at the site.
Where you choose to locate your retail business will have a major impact on everything your
shop does. The difference between selecting the wrong location and the right site could be the
difference between business failure and success.

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