Retailer location decisions are complex. However, costs are pretty high, there is little flexibility once you choose a site, and locational attributes significantly impact a strategy. One of the oldest trading adages is that “location” is the primary factor leading to a firm’s success or failure.
A good location is substantial enough to permit a retailer to succeed even if the strategy mix is mediocre. Although its variety is limited, a hospital or a gift shop may do well, but its charges are high, and it does not advertise. From the planning of the retail shop to its finance strategy, the retailer location database has a vital role in progress.
On the other hand, a poor location may be such a liability that even higher retailers cannot overcome it. For instance, a mom-and-pop store may affect badly across the street from a category-killer store. Though the small firm features private service, it cannot match the selection and charges. At a different retailer location, however, it may prosper.
This location affects long- and short-run planning, and however, the choice of site influences the overall strategy in the long run. A retailer must be at a spot consistent with its mission, goals, and target market for a long time. The retailer location database is frequently studied and monitors the location’s status as to people trends, the distances travel to the store, and competitors’ entry and exit—and they adapt accordingly.
Factors affect location:
The choice of a shop location requires extensive decision-making because of the number of criteria considered, comprising:
- population size and traits
- the market competition
- parking availability
- the nature of nearby stores
- transportation access
- property costs
- the agreement length
- legal restrictions, and other various factors.
Installing store locator software and an updated retailer location database can increase the visibility of your business, boost site traffic, build trust and loyalty, and help you learn more about your customers to serve them better.