It would be an understatement to say that retail site selection isn’t easy. There are so many things to consider when deciding where to build, and it’s easy to make mistakes.
While these mistakes can be critical, they’re also something that you can avoid. Keep reading to learn how NOT to make these five common mistakes in retail site selection.
1) Relying On Limited Models
Site selection models are a great starting point. But they’re not the only thing you should base decisions on. Make sure you’re also looking at variables which can’t be easily measured (such as visibility ratings) and consulting with retail experts who can help provide context for additional data.
2) Unbalanced Customer Profiles
It’s important to look closely at the overall population in your retail area, as well as the percentage of that population which fits your target customers profile. How much weight you put on each number will, in part, depend on where you’re building. For example, an area with low population density can still support new retail if a high percentage of people there fit your target profile. In areas with large populations, you might still find success even if there’s a relatively small number of your target customers.
3) Not Adapting To Customer Needs
The companies that continue to build new stores even during the “retail apocalypse” are typically the one responding to customer needs. It’s time to stop thinking of retail expansion as building more or larger stores and start zeroing in on what customers want. In many cases, small footprint stores are the best way to fill customers’ needs.
4) Poor Decision-Making Structure
In order to make an objective decision about site selection, it’s important to make sure no one person has too much control. There’s a danger that a single decision maker, or even a small group, might have too much invested in a specific location and lose objectivity. Make sure there’s a decision-making structure in place that takes the entire group’s interests into consideration.
5) Not Hiring An Expert
With all the variables that go into retail site selection, it’s difficult to take everything into account without outside help. Hiring a third-party consultant like Retail Attractions gives you a big advantage. Our Demographic Analysis and Opportunity Gap Analysis supply nuanced information that will let you know if your company can fill retail gaps in the communities you’re looking at. We can also offer counsel on the best way to expand, and act as an objective voice in decision-making. Get in touch with us today to get started.
If you found this article useful, then you’ll probably also like my book City on a Hill. It gives a no-nonsense take on economic development that’s really helpful for companies looking to expand their retail development.