Location, location, location. This is one of the most critical decisions while establishing a new retail business. It is very important to find a convenient place near targeted consumers, affordable, and has enough space to properly display merchandise. The selection of a store location is influenced by several factors, including:

Pros and Cons of Store Locations

With so many options available in real estate, business owners should evaluate the advantages and disadvantages of opening a store in a certain place. Here is an overview of the most common locations for retail, along with their benefits and challenges.  

Single sites

These are independent locations which are isolated from other stores. They are usually located on the side of the road, near other independent stores or malls. Some examples include park kiosks, mom-and-pop shops, corner stores, and mini markets. ProsCons 

Natural/Unplanned Shopping Areas

These are retail clusters that have been growing over time and have multiple stores, which are independent from each other. Some examples of these clusters include downtown business districts, high street locations, neighborhood business districts, and strip malls. ProsCons 

Shopping centers

These sites have a large assortment of retailers which are placed next to an anchor store. The wide variety of options drives customer traffic. Some examples include malls, specialty markets, mixed-use developments, lifestyle centers, and outlets. ProsCons

How to Analyze Retail Locations

In order to compare potential locations, it is necessary to evaluate the features of each location in terms of:

Choosing the Right Location (Step-by-Step)

Step 1: Make a situational analysis Evaluate the potential location using the following questions as a starting point:  Step 2: Analyze your Market Demo Using the following questions, create and/or update your target customer profile:  Step 3: Benchmark and compare options Using the comparison analysis explained earlier, analyze the current available locations and verify if there are any other potential options you have not considered. You can also evaluate the compromises you must make while choosing one location over another.   Step 4: Finalize the location selection Contact your realtor and close on the location you have identified as the best fit for your business. Once this location opens, keep track of its performance through indicators such as:

How to use Erply to manage a retail chain

As clients grow and open new locations, Erply offers them the option of adding and managing their locations through the Retail Chain module. Some of the functions available include:By adding locations to their Erply backend, business owners can standardize operations through different stores, and generate performance reports specific to each location. Doing so will allow them to analyze their location selection and gain valuable customer insights to inform their decision on opening a new store.