Location Retail Store  

When deciding the location to set up a retail store, it is necessary to look at several aspects when deciding how to determine the proper site, namely, research into the traffic in that area - both vehicular and pedestrian that will bring business into the store. Where to choose to locate a retail business will have a major impact on everything the shop does. The difference between selecting the wrong location and the right site could be the difference between business failure and success. Selection criteria include factors such as retail compatibility and zoning, which the small storeowner manager must consider after making basic economic, demographic, and traffic analyses.

One important factor that affects site selection is the customers' view of the goods sold by a store. Consumers tend to group products into three major categories: convenience, shopping, and specialty. The site in the central business district that produces the highest traffic count with regard to the type of traffic desired by a particular store is considered its 100 percent location. However, a 100 percent location for one type of store may not be 100 percent for other types. For example, a site which rates 100 percent for a drugstore may be only 80 percent for a men's clothing shop or 60 percent for an appliance store. Three factors need to be considered in choosing a location: selection of a city; choice of an area or type of location within a city; and identification of a specific site. In choosing an area or type of location within a city a firm has to evaluate factors such as:

• Customer attraction power of the particular store and the shopping district.
• Quantitative and qualitative nature of competitive stores.
• Availability of access routes to the stores.
• Nature of zoning regulations.
• Direction of the area expansion.
• General appearance of the area.