out of 19
Post on 20-Aug-2015
Embed Size (px)
- 1. Business Locations: Accessibility, Visibility, and Traffic Marketing I Mr. Yates
- 3. What does that matter?
- Don't confuse a lot of traffic for a lot of customers.
- Retailers want to be located where there are many shoppers butonly if that shopper meets the definition of their target market .
- Small retail stores may benefit from the traffic of nearby larger stores.
- 4. Items of concern for success
- How many people walk or drive past the location.
- Is the area served by public transportation?
- Can customers and delivery trucks easily get in and out of the parking lot?
- Is there adequate parking?
- 5. The Retail Rule of Parking
- Depending on the type of business, it would be wise to have somewhere between5 to 8 parking spaces per 1,000 square feetof retail space.
- 6. From the Customers Viewpoint
- Can the store be seen from the main flow of traffic?
- Will your sign be easily seen?
- In many cases, the better visibility your retail store has, the less advertising needed.
- A specialty retail store located six miles out of town in a free standing building will need more marketing than a shopping store located in a mall.
- 7. Signage and Zoning
- Before signing a lease, be sure you understand all the rules, policies and procedures related to your retail store location.
- Contact the local city hall and zoning commission for information on regulations regarding signage.
- Ask about any restrictions that may affect your retail operation and any future planning that could change traffic, such as highway construction.
- 8. Malls
- 9. Malls
- 10. Competition and Neighbors
- Other area businesses in your prospective location can actually help or hurt your retail shop.
- Determine if the types of businesses nearby are compatible you're your store.
- (For example, a high-end fashion boutique may not be successful next door to a discount variety store.)
- Place it next to a nail or hair salon and it may do much more business.
- 11. Sales Volume Determines Size
- In retail,sales per unit areais a standard and usually the primary measurement of store success.
- As of 2005 annual store sales averages are in the range of $300 per square foot
- In the United States the national averagefor regional mallsis $341 per square foot
- The average for specialty apparel retailers, for instance, is $400 per square foot
- Hot Topic - $619, Jewelers $600+
- 12. How Big do I Need to Be?
- Sales Volume Sales per Square Foot = Selling Space
- Let's say you believe your proposed book store will do $250,000 per year in sales and market data says the average sales-per-square-foot in a book store is $150.
- By plugging those numbers into our formula, the amount of selling space you will need is approximately 1,666 square feet.
- 13. Size (continued)
- Besides selling space, remember to factor in extra square feet for:
- an office area, stockroom, storage, and/or bathrooms.
- Although you may want room to grow, keep the size of the building close to your store's needs.
- A big store takes more inventory to fill and an empty looking store may not attract customers.
- 15. Location Costs
- Besides the base rent, consider all costs involved when choosing a retail store location.
- Who pays for lawn care, building maintenance, utilities and security?
- Who pays for the upkeep and repair of the heating/air units?
- If the location is remote, how much additional marketing will it take for customers to find you?
- How much is the average utility bill?
- Will you need to make any repairs, do any painting or remodeling to have the location fit your needs?
- Will the retailer be responsible for property taxes?
- 16. Location continued
- The location you can afford now and what you can afford in the future should vary.
- It is difficult to create sales projects on a new business
- one way to get help in determining how much rent you can pay is to find out what sales similar retail businesses are making and how much rent they're paying.
- 17. Personal Factors
- If you plan to work in your store, think about your personality, the distance from the shop to home and other personal considerations.
- If you spend much of your time traveling to and from work, the commute may overshadow the exhilaration of being your own boss.
- Also, many restrictions placed on a tenant by a landlord, management company or community can hamper a retailer's independence.
- 18. Special Considerations
- Your retail shop may require special considerations. Make a list of any unique characteristic of your business that may need to be addressed.
- Will the store require special lighting, fixtures or other hardware installed?
- Are restrooms for staff and customers available?
- Is there adequate fire and police protection for the area?
- Is there sanitation service available?
- Does the parking lot and building exterior have adequate lighting?
- Does the building have a canopy that provides shelter if raining?
- What is the crime rate in the area?
- 19. Dont rush!
- Don't feel rushed into making a decision on where to put your retail store.
- Take your time, research the area and have patience.
- If you have to change your schedule and push back the date of the store's opening, than do so.
- Waiting to find the perfect store location is better than just settling for the first place that comes along.
- The wrong location choice could be devastating to your retail business.
View more >