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  1. 1. Business Locations: Accessibility, Visibility, and Traffic Marketing I Mr. Yates
  2. 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.
  3. 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?
  4. 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.
  5. 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.
  6. 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.
  7. 8. Malls
  8. 9. Malls
  9. 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.
  10. 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+
  11. 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.
  12. 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.
  13. 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?
  14. 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.
  15. 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.
  16. 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?
  17. 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.