Retail Store Location

Since many of the related long-term choices and commitments are dependent on the retail position, having a good retail store location is one of the most critical impacts in the retail marketing campaign. One of the most vital factors in attracting prospects and consumers is having a suitable venue.

A good location can sometimes lead to a significant competitive edge because the location is one of the most critical criteria in the retail marketing mix. After all, it is unique in a way that rivals cannot duplicate.

Importance of a good retail store location

A successful shopping position is a strategic advantage that the rivalry cannot match. One retail store can be occupied by one location, and time, like location, is important.

E.g., suppose a Gucci retail store opens in a certain area, and for a few months, that store is the only place where residents can buy Gucci goods.

Gucci Good Retail Store Location

If Nike appears in the same neighbourhood after a few months, it would be impossible for Nike to compete with Gucci for the same room.

Nike Retail Store Location

The Nike shop must be very close to the Gucci store, which is mainly dependent on the affordability of the venue or very far away from the Gucci store, thus targeting a particular neighbourhood and customer base.

Many supermarket companies are also concerned with customer proximity. Several supermarkets can be opened outside of the city at a lower cost, but merchants could not attract buyers to that particular neighbourhood.

As a result, merchants must consider how consumers will think and open a comfortable shop for them. Since customers are geographically dispersed in all directions, merchants cannot open a store in any neighbourhood; instead, they must choose a central location available to most of them within a given circle's diameter.

Customers should be able to get to the grocery store. The term to use here has little quantification. It cannot be quantified at the shop within 1 mile or ten miles of the buyer because it is based on the country's locality and the retailer's likelihood.

Having a convenient shop location aids the company in making supply chain and delivery plans for a specific outlet easier. This lowers the organization's costs, and when it comes to satisfying the customer's immediate needs and delivering urgent requests, the supermarket outlet would have no trouble doing so.

Since shipping costs are lower, total supply chain management and operations costs are lower, allowing the retail store and the retail business to get closer to the six sigma process.

Having many discount stores close often allows the retail company to stock and bed storage houses in one centralized location, allowing the majority of retail shops to be opened quickly. This shortens lines and decreases the number of instances of "No Stock" in supermarkets.

A strategically located discount store can also affect consumers' purchasing patterns. Customers will still choose their brand, but they will most of the time rely on other labels to escape the hassle of getting to their market.

E.g., a die-hard Pepsi fan lives in a specific area, and the nearest Pepsi store is ten blocks away.


Since he is such a die-hard Pepsi enthusiast, he will make sure to stock up on Axis Pepsi at home, but there will be days when we will have to walk some blocks or take a convenient mode of transportation to the location to buy Pepsi for himself.

A few days later, he discovers a store just one block away from his home that sells Coca-Cola. One day, a customer tired of walking ten miles looked for Coca-Cola and wondered why it was coming from a location just one block away.


He tries Coca-Cola and declares it to be on par with Pepsi, so he stops purchasing Pepsi and replaces it with Coca-Cola.

Depending on the size of the market and the clients they represent, retailers may identify a few different forms of business operations.

Types of Retail Store location

There are primarily three types of retail locations that can be considered depending on the nature of the business.

  • Solitary sites

There are single small retail stores isolated from other writers and located alongside other retailers on the roads leading to shopping malls. This kind of isolated location is used by both food and non-food vendors.

The main benefit of providing a single website is that it is separate from the market and offers resources to consumers to decide which goods to buy from the specific store.

However, the disadvantages of choosing a single location are that foot flow will often be lower than in a shopping centre or a convenience store, and visibility will also be lower, in addition to the significant investment.

  • Unplanned shopping areas

There are department stores that have grown over time and now have several locations nearby. These are further subdivided into the following categories:

  • The central business district, such as the downtown districts of major cities, is a central business district.
  • On main or high Street, there are secondary business districts.
  • The district is a residential area.
  • Strip locations are a form of location transfer that takes place on the street or the highway.

The benefits of getting unplanned shopping centers to include heavy foot traffic during working hours and proximity to my suburban areas. This guarantees a steady stream of clients.

The downside of having an unplanned shopping area is that shoplifting is a possibility, necessitating increased security. This can also annoy other users, and there is a high risk of traffic congestion due to the lack of parking spaces.

  • Planned shopping areas

Planned shopping areas are retail sites that are well-designed according to architecture and have many options under one roof. They have extensive land holdings and a diverse range of global retail brands. Developed shopping districts include malls, specialty stores, and lifestyle centres.

A significant benefit of developed retail areas is their high profile and potential for consumer harm. However, there are drawbacks, such as the need for surveillance and the high cost of accommodation.

Tips to have a good retail location

As previously reported, selecting the appropriate curriculum is critical in the business world. As a result, based on the size of the market and the target demographic, various laws regulate the location of a retail store.

However, there are a few moves that nearly all retailers should take to locate the best shopping spot.

  • Market Analysis

The corporation must assess the demand in terms of their goods and business and the essence of competition and its presence. The business must also remember how old the industry is and how many other companies are present in the same area.

They would examine and evaluate the industry to determine how competitive the rivalry has been in satisfying consumers. To keep the goods affordable regularly, the organization must also assess how convenient the venue is in supply chain management and warehousing

  • Demographics of the market

When choosing a shopping venue, the area's population must be taken into account—the customer's age demographic, occupation, lifestyle, profession, religion, wealth groups, etc.

  • Market potential evaluation

The population's purchasing power and the effects of competition, commodity estimation, and demand are all critical factors in determining the market's ability. The merchant should also be familiar with the laws and regulations of the country in which the shop is located.

Other factors, such as communal holidays that affect demand, such as Christmas, should be taken into account by the company.

  • Identification of alternatives

Most of the time, retailers in a rush to get their business up and running choose a spot that costs them a lot, while a close location with similar business opportunities was possible somewhere nearby that was missed or forgotten.

In such situations, the retailer does not continue to finalize the store position and should instead look for alternatives and review them using the same criteria as previously mentioned.

  • Allocation of marketing budget

An advertisement expenditure for a department store can be determined by the venue's expense, which is the third cost to construct the brick and mortar location. The shop, which is in a prime location and has a steady stream of customers, has cost the retailer much money.

Since the message is clear to most consumers and passers-by, the ad investment would be meagre in those scenarios. To draw more consumers to a store situated further from the main street, it can use more ad strategies and invest more money in marketing collaterals.

The shop has been much more affordable with the introduction of social media ads. People can advertise their store on Google for a meagre cost and ensure that anyone reaches out to potential buyers in their immediate community and other neighbourhoods.

How to measure the success of Retail Location

It is vital to keep track of how well the venue has turned out to be the company until the systematic method of choosing the location has been pursued, and the retail store has been opened in a designated area. Aside from that, the retailer can do a few position assessments:

  • Macro location evaluation

As the name implies, this is a method of appraisal used to determine the success of a retail location at a national level carried out by a firm when it wishes to start selling its goods and open a retail store on a global scale.

The below are the measures involved in doing a retail place assessment:

PEST, which stands for Political, Economic, Social, and Technical, and is also known as PEST analysis, is an acronym for Political, Economic, Social, and technical. It is used to do a detailed audit of the industry.

Other critical considerations, such as the custom nature of the competition's purchasing capability and position availability, are set at a minimum reasonable standard, and the countries compete head-to-head.

  • Micro-location Evaluation

Many variables are analyzed and evaluated at this stage, including:

Population – the average number of inhabitants in the area is taken into account. This figure reflects the number of customers who shop at that specific store.

Shop outlet – rival shops in the immediate area are listed and stores that detract from the site's appeal, and stores that enhance it.

Infrastructure – the story's usability is boosted in terms of future buyers.

The cost of construction and maintenance is the most significant consideration in the case of a retail store. The cost of setting up a retail store affects the success of the company.


Competing in today’s world can be tough. Being able to establish any kind of advantage can set you up for success over the competition. Creating brand loyalty to your company or products can help take your company to new heights. Choosing the right retail store location will propel the growth of your brand.

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