Choosing the location of a store in the right way

One of the decisions that every retail company must make is whether its expansion strategy will be through points of sale located in shopping centers, or in external locations. This strategy, in turn, becomes part of the Marketing Plan; and is that the location of the premises will determine the communication and advertising channels.

The need to get a good location is so important that many companies wait years to obtain the ideal location, since the available investment is also limited. This is one of the reasons why it is essential to have well-defined criteria within the expansion strategy. If you live in Lahore, I think you have enough ideas about the Emporium mall. Most of the people wants to get a place in this mall.

The current market situation requires refining the decision of the opening place and reducing, as far as possible, the existing uncertainty when deciding to open a new store.

This decision will depend, in large part, on the business model that is owned. For example, if you are a marketer of third-party brands, it will surely depend on the retail commercial margin, which, in many cases, will not exceed 40%. However, if you are a representative of the brand and you trade directly with the final consumer, you can take advantage of the wholesale margin (wholesale) and, in turn, the retail one: a profit margin of 70% to 80%, which will allow to assume higher costs.

Data for optimal decisions

In general, you must determine the minimum square meters to develop the business (width and height of the facade, and height of the premises), the number of levels you want, the traffic of bystanders needed, etc. This will reduce the choices of premises on which to decide, discarding those that do not comply with the premises.

As for shopping centers, it must be determined what is important to be in and, in turn, the public traffic that will be generated in each of the existing shopping centers must be analyzed (the success or not of the point of sale). Do not forget that in the world of retail, business traffic depends on the flow of people who generate the same shopping center.

In addition, you have to take into account the location in the shopping centers. For example, in leisure areas, purchases are subordinated to entertainment, restaurants, cinemas, electronic games, etc.

In the case of premises with a door to the street, the physical location of the store -in the case of public roads-, will determine the flow of pedestrians: transit in the area will define the amount of revenue to the premises.

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Created on Dec 9th 2018 14:26. Viewed 356 times.

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