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Archive for December, 2018

The Most Important Factors In Retail Site Selection: Part Two

There are several important factors to consider when you’re making decisions about retail site selection. Choosing the right location for new retail expansion is key to success. Location, location, location…As such, it’s vital that you understand all the factors involved.

The better you understand these important factors, the more likely you are to have a successful development site. We talked about five key factors in Part One that will help you narrow-down which cities and towns can be good fits for your business. Today in Part Two we’ll talk about five more factors that can help you choose the best site to build.

location-is-everything-when-choosing-retailer-site

Co-Tenant Quality

It’s vital that you consider the existing tenants surrounding a potential location for retail expansion. The neighboring businesses often have a profound effect on your success. You want to locate where surrounding tenants are drawing consumers already. The quality of the real estate around the site should be compatible with the use as well. Buildings with a lot of swag and national brands probably wouldn’t be a good co-tenant with a vape shop or a tattoo parlor.

Proximity to Competitors

Some would think that locating too close or adjacent to a competitor would not work. But it wouldn’t take you long to disprove that miss-conception. I was doing work for a national QSR looking at sites in an urban area and lo and behold every site they wanted to see already had a McDonalds near or on the opposing corner. This really excited the franchisee as he wanted to be as close the big boys as possible.

Traffic Counts

Getting information on traffic counts for any given location is pretty easy. Just make sure the counts you get are current. Every retailer wants the same thing, accessibility and visibility. The object is the more traffic the better, but consider access, and turning movements and ease of exiting your location back to the main traffic corridor. Lots of cities are designing boulevard style streets with medians and landscaping. Right in and right out only turning movements are a requirement in lots of urban and suburban settings. Just make sure the due diligence is done and all the issues are planned through.

Parking Availability

Customers don’t like having to park off site or pay for parking. If you build in a location without good parking, there’s a good chance some customers will decide your business isn’t worth the extra hassle. A well-maintained, convenient, and free parking area is a definite asset when you’re selecting a retail site. Most modern building codes require a certain number of parking spots per square foot of the building anyway. Mutual access and mutual parking agreements are also common. Study the essentials and avoid disappointment.

Finances

The last, but certainly not least, factor we’ll talk about is the economics of your retail site selection. When considering finances, take a look at the value each property you’re considering can offer. The price you’re paying to build, purchase or rent space definitely plays a role. You’ll also want to consider utilities costs and amount of maintenance you’ll be responsible for. If you want to be next to the big boys be prepared to pay.

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If you liked this article on important factors in retail site selection, be sure to check out the other articles on RetailAttractions.com. And if you want any help with retail site selection, get in touch with us. We have extensive experience with helping retailers find the best possible locations for their next expansion.

Also, be sure to pick up a copy of my new book The Devil’s In the Details: Things that Challenge City Government and the Language of Development. It addresses glaring problems and issues that destroy foundational economic development efforts for cities and provides guidelines for how to overcome those issues. Click here to order.

The Most Important Factors In Retail Site Selection: Part One

When you’re making decisions about retail site selection, there are several important factors to consider. Selecting the right location for new retail expansion is key to success. As such, it’s vital that you understand all the factors involved.

The better you understand these important factors, the more likely you are to make a good site selection. We’ll talk about five key factors in this blog post, and five more in Part Two.

important-facts-to-consider-when-selecting-retail-location

Customer Demographics

To look at relevant customer demographics in a certain area you need to know what type of customers will frequent your business. In other words, What is your target demographic’s customer profile? Knowing this will let you determine whether or not the customer base in the area you’re looking at is large enough to support your business.

Once you know what your customer profile looks like you can take this factor into account in retail site selection. Take a look at median household income, average age, marital status, family size, education level, etc. in the location you’re considering. The better a location’s population matches your target demographics, the better this site will be for your business.

Customer Psychographics

Demographics are about who your buyer is. Psychographics tell you why they buy. It takes into account “your buyer’s habits, hobbies, spending habits and values” (from “How to Use Psychographics in Your Marketing: A Beginner’s Guide”).

Once you understand more about why your customers buy your products, you can make sure that you’re selecting a location that will appeal to them. For example, if most of your customers are health-conscious they’re more likely to find your store if you build near a gym than near fast-food restaurants.

Trade Area Population

You also need to look at how many people live in the area you’re considering for your next retail site. There has to be a large enough population in your trade area to support your business or there’s no point in building. You’ll also need to make sure that a high enough percentage of this population fits your customer demographic.

There’s more to defining an accurate trade area than just using concentric rings. You need to take into account population density, competing communities, natural barriers, traffic flow, accessibility, and other real-world factors.

Location Quality

If the trade area population matches your customer demographics and psychographics, then it’s time to start considering specific locations. You’ll want to look at how far each location is from residential areas and how visible it is from the road. Also, consider whether or not nearby businesses will draw-in customers who fit your profile.

You’ll also want to consider whether or not you’re going to plan for multi-location growth. If the trade area can only support one store or restaurant, then you’ll want a central location. But if the community, and your customer base, is growing you’ll want to plan ahead for the possibility of opening other locations in the future.

Location Access

People are far more likely to visit your business if it’s easy to get to. You want people who see your sign or look you up online to be able to find your business easily If it’s too hard to access, then there’s a good chance potential customers will give up on finding you.

An ideal location makes it easy to turn in from the nearby roads and get into the parking lot. It should also be easy to get out of the parking lot, and if there isn’t a traffic signal in place you’ll want to find out whether the community is willing to put one in.


If you liked this article on important factors in retail site selection, be sure to check out the other articles on RetailAttractions.com. And if you want any help with retail site selection, get in touch with us. We have extensive experience with helping retailers find the best possible locations for their next expansion.

Also, be sure to pick up a copy of my new book The Devil’s In the Details: Things that Challenge City Government and the Language of Development. It addresses glaring problems and issues that destroy foundational economic development efforts for cities and provides guidelines for how to overcome those issues. Click here to order.