The information contained in the blog is accredited to research done by George Cosmin Tanase, an economics major and blog writer from Bucharest, Romania. The article is titled, Trading Area Analysis and the Importance of Location to Retail Companies.
There is a lot of information contained within this article so I chose to use tables in hopes of keeping things simple and (hopefully) understandable. I title my synopsis of his article;
The Stairway to Retail Location Success
Step #1: COSTOMERS:
| Population Size | Age Demographic | Household Size | Income Level | Spending Patterns | Shopping Patterns | Cultural/ethnic Grouping |
Step #2: ACCESSIBILITY
| Site Visibility | Pedestrian Flow | Pedestrian Entry Routes | Parking | Public Transportation | Access for Transport/Deliv. |
Step #3: COMPETITION
| Existing Retail Activity | *Existing Retail Specification | Saturation Index | **Competitive Potential | Proximity of Key Competitors |
*
| Selling Area | Turnover Estimates | Trade Areas | Age of Outlets |
**
| Outlet Expansion | Refurbishment | Vacant Sites | Re-positioning |
Step #4: COSTS
| Purchase Price | Building Costs | Rent Costs | Leasing Terms |
| Site Preparation | Building Restrictions | Develop. Concessions | Rates Payable |
| Refurbishment Needs | Maintenance Costs | Security Needs | Labor Rates |
| Staff Availability | Delivery Costs | Insurance Costs | Promo/Media Costs |
So in conclusion, “The STAIRWAY TO Retail Location SUCCESS” starts with:
Step 1:
Knowing your Customers’ Wants and Needs
Step 2:
Making it Easy for them to Get To and Stay With You
Step 3:
In depth Analysis of Competitors
and probably the Most Important;
Step 4:
Careful Consideration of ALL COSTS involved in The Process!!!
Following these steps with in-depth Research & Analysis will lead you in the decision process of selecting the ideal location to guarantee Retail Location Success.