Retail Location/ Place

Most Important Factors in Retail Site Selection

 Population Density
First, you must think about the population
density in the area you’re considering for your
business. Are there enough potential
customers to make your business successful?
If you’re considering renting space in a new
development, be sure to ask the property
owner, developer, or broker when and by how
much they expect the area to grow, and then
do your own research
 Location Quality
When choosing a retail location, carefully judge the overall quality of the location. How well
is it situated in the market? Do you need a central location for a single store market or
should you strategically allow for a multi-store growth program? How visible is the site from
the road and parking lots?

Think about how many walk-ins you’re likely to get based on what’s nearby. For example, how
far are you from residential areas? Convenience is very important for most retailers.
 Customer Demographics
Customer demographics is equally as important as population density during retail site
selection. While having large numbers of people in the area is a good thing, it means very
little if they’re not the sorts of people who would frequent your business.

Therefore, it’s crucial that you take into account area information such as median household
income, average age, family size, and education level etc.
 Customer Psychographics
Psychographics? What’s that?
In addition to demographics, psychographics can be extremely helpful in choosing a retail
location. For instance, if your business will be catering to the health-conscious crowd,
choosing a location situated in the middle of a cluster of fast food restaurants may not be
ideal.
Instead, you might choose to be near a gym and a nice park with a walking path. Knowing your
customers and their tendencies will help you make an informed decision. Think long and
hard about your prospective customer and how they think and behave.
 Location Access
A person is much more likely to visit a business if
it’s easy to access. Therefore, it’s important to
ask yourself questions about the accessibility of
the location in question:
● How easy is it to get in and out of the parking
lot?
● Is the location on the “drive home” side of the
main road?
● Is there a traffic signal to assist people in
leaving the location?
● Is it possible for passersby to easily stop in?
 The Economics of the
Agreement
Obviously, finances should be taken into
consideration during the retail site
selection process. This means looking at
the value a certain property can offer in
comparison to what other options might
offer. Consider the factors listed here as
well as the cost of utilities and the amount
of maintenance you’ll be required to do.
 Traffic Counts
In the same way that it’s important to have plenty of potential customers around your retail
location, it’s also important that those potential customers see your business. This is best
accomplished by securing a place on a well-used road. Retail locations that are placed on
smaller roads tend to see less business. Traffic counts are easy to get and they are important.
 Proximity to Competitors
If your store will have competition in the area, it’s important to consider how close those
competitors are and whether a newer business will have trouble bringing in customers with
a similar, more established business in such close range.
 Parking Availability
Parking on the road or depending on the availability of free or paid
parking for customers to visit your establishment is certain to drive
some patrons away. Make sure the retail location you’re considering
has plenty of well-maintained parking available.
Thank you