We don’t need to tell you that thorough location planning can make or break the success of your new outlet.
There are so many variables to consider when selecting a site for a new retail outlet, and effectively collating and analysing all the data you need to make a final decision can become a major challenge.
Use this checklist to assess potential sites for your next location.
Signs of a promising location
If you spot any of these factors developing in a market, it is probably worth looking at it in more detail:
- Existing and potential customers are buying from competitors’ stores
- The local transport network is set to be upgraded in the near future
- A new residential or retail development has been granted planning permission
Indicators that a location could perform well
These are some of the clearest signs that your new store could be successful in a particular location:
- Sufficient numbers of existing customers are based locally to justify opening a new store
- Existing customers feel the store they currently use is over-capacity or difficult to access
- People living and working locally match your customer personas
- This location would set your company apart from competitors
- There aren’t enough local competitors to satisfy the market
- Other local competitors are unable to match the standard of your product/service
- Existing competition has not saturated the market
- Opening a new store locally would help you move ahead of competitors
- The locality has established public transport and/or personal transport options
- The transport network is easy to access from the proposed site
- There is sufficient space for customers to park and for goods to be unloaded conveniently
- The proposed location benefits from decent footfall
- Local residents have an educational and financial profile that would make them fit with your preferred employee demographic
- Staff can access nearby transport options conveniently
Points to watch out for during location planning
Just as there are many indicators of a good location, there are several that suggest a poor fit. If you’re able to tick any of these off your checklist, you might want to consider an alternative site for your new store:
- Customers you plan to target would find it easier to travel to the store they are currently visiting
- You would need to offer extra incentives to persuade existing customers to travel further
- Competitors have a more advantageous position than the one you’re considering
- Competitors offer a more comprehensive service in a nearby store
- Existing staff would have to be incentivised to move to this area for work
- Local residents with the skills required to work for you are in short supply
As you can see, there are many questions that need answering before you commit to a new site. Collating the relevant data through this checklist is a great start, but you need to put it all together to pinpoint the very best location for your new outlet.
With advanced location planning software like Periscope®, you can:
- Visualise potential store locations, customer demographics, competitors and transport links on an intuitive map
- Import existing customer data to create true-to-life supply and demand estimates
- Build profiles of your ideal customers, and identify the best locations to attract them
- Find new areas that match the demographic make-up of your best performing stores
- Compare the specifics of similar locations side-by-side to make a final decision with confidence
Find out how Periscope® can provide you with a level of insight that will help make your next location a great success.