Selecting a retail space is a make or break decision for a business owner. The conventional success sutra for retail success is to pay low rent, provide less expensive products and get maximum customers to buy products from your store. But in reality, it is not as simple as that.
There are many factors one needs to look into before finalizing a retail store business. One of the key factors in deciding your location is analyzing the kind of products or services you are selling. Broadly customers buy products either impulsively or through a process of careful planning.
Some purchases are made on impulse and other purchases are made after careful planning. Retail for the carefully planned shopping will be termed planned retail.
Cafe Coffee Day is a great example of an impulse purchase. You see a CCD location and decide to pull over and have a coffee and perhaps a pastry. Have you noticed how CCD almost always has incredible locations?
Selecting a Retail Space in Impulse Retailing
If the products you are merchandising seeks impulse purchases, you should see prime location. If they are in a shopping center, they’re almost always in an end-cap location.
If they are part of a larger shopping plaza, they typically have the best location within the shopping plaza. Great visibility and great access are both important.
Even though it will not be easy, you probably need to pay for the very best possible location.
Selecting a Retail Space in Planned Retailing
In selecting a retail space for planned retail, an incredible, prime location is not necessary. You need to be in the right area but you do not necessarily need the finest location within the shopping center.
Almost all planned retail outlets have a convenient location with good visibility.
While access is a factor for planned retail, it is much less important in comparison to impulse purchase retail. Jewelry Retail outlet like Tanishq is a perfect example of Planned Retail.
Check your product. Is it impulse or planned? Accordingly, take your decision in fixing your retail space.