Generally a high street site will offer good retail locations, but if you are off the main thoroughfare then you must be careful.
I am sure you know the streets where the shops seem to come and go constantly. For some reason the passing trade is slow or shoppers simply don't go in. The reason is not always obvious. It may be that the road doesn't go anywhere, or there is a more convenient and quicker bypass nearby that gets shoppers where they want to go.
Shoppers may not be aware of a retail location. Ask yourself whether the location look like a place to shop? Have you ever walked up a street looking at shops and then decided that it doesn't look like there are many more shops ahead so
turned back? Is it welcoming, are the businesses obvious?
Then there are the single doomed premises. I know a site on the New Kings Road in London, a site that should do very well, but which has had a new restaurant every few years for as long as I can remember. I can only speculate as to why businesses fail there. It is on a sudden bend in the road, where the pavement is very narrow and there are railings to protect pedestrians from accidentally stepping into the road. There are also some traffic lights a short distance away and cars seem to queue at this point. Basically the street environment outside is not one that you would associate with a cosy dinner. You imagine what it would be like to be sitting looking out on all of that. In fact, if you go inside, you are unaware of the unwelcoming chaos outside and it is a great place to eat, but from the outside you don't get that sense and perhaps that is what is killing their trade.
Personally knowing a location is your best guide, but there are many ways to get information about the trading history of a specific location; old phone directories, council records, companies house and the local neighbours. Always ask the neighbouring traders their opinion, ask about the history of the specific retail location and the other traders on the street.
Businesses do move out of good locations, especially if they are part of a larger chain or group where the business fails in some other part of its infrastructure. Other local businesses can go bust through poor margins or bad financial management. A business that has been in a location for a long time and then goes will probably be suffering because of cheaper or better quality competition and low margins on its products.
Always check for local competition. if you are directly competing then pricing is important, but you may also find yourself filling a gap in the market, especially when recessions have driven less efficient traders out of business.
Be Clear In your Mind Exactly What Makes a Good Retail Location
Customers plan to buy something they really need or buy on impulse because they like something and can afford it. These two ways of shopping are the reasons behind your choice of retail location.
There are two fundamental reasons why your retail location is so important.
1. Passing Trade
Most shoppers have some products that they have in mind that they are definitely looking for and personal tastes and likes that control what they might buy on impulse. Shoppers passing your shop will see your display or look into your shop and see something they need or would like. The more people that do this the greater your sales.
People like convenience, so if you are there in front of them, they will wander in. It depends on what you sell, the more specialised or unusual your products, then the more you can get away with a less central location. You will proportionately have to spend more on advertising to raise awareness of your location.
2. Establishing Your Brand
Shoppers will pass your business every day so you will build up familiarity. They may later deliberately make their way to your shop because they believe you have what they want. Your window display will drive some of this; it is, after all, your biggest advertising display, so make it a good one and vary it as often as possible.
Researching Your Shortlist Of Retail Locations
- Footfall - probably the best thing you can do is camp outside any retail location that you are considering and count the number of people passing. Keep a tally each half an hour so you get an idea of how customer traffic fluctuates during the day.
Through Routes - you should be aware of any 'types' of customers that may be passing. For example, if you are near a commuter station, then you may have large number of office workers passing late in the day.
- Local Institutions or Offices - local offices, colleges, libraries, bus stops and train stations will all influence the type of people that will be passing your retail location.
- Other similar local retailers. You don't want too much direct competition, but certainly you will benefit from similar or compementary businesses.
- Local residential neighbourhood. 47% of retailers view their market as local, so who lives in the surrounding area will be inportant. Interestingly a large survey of retailers found 11% who considered their business to be national. Certainly there is a growing trend towards internet sales with estimates placing about 30% of retail sales from the internet by 2012.
- Shop Access a\nd parking availability - important if your products are larger and your customers will need a car to take them away. Parking also brings in more passing trade.
- Catchment Area - You can extend your area of influence with broader advertising. Raising awarenes in teh local region will bring people in who sre specifically looking for what you have to offer. They may come from neighbouring towns or villages where there is no retail outlet exists that offers the same product lines.
Categories of Retail Locations in the UK
There are a number of different groups of retail locations. The following list shows the main types.
• Out-of-town shopping centres (malls)
• Retail parks
• Factory outlets
• In-town shopping centres
• ‘The high street’
• Rural retailing
• Market places
• Travel locations
• Event/visitor retailing (tourism)
You should be aware which of these general retail locations would best suit your product ranges.
Location Grants
Some local councils and authorities offer grants, advertising and promotions to small businesses who start up in certain areas, so speak to your local trading standards or economic development division. |