Steps to Choose the Right Retail Location

Step 1 - Analyze the market in terms of industry, product, and competitors −

How old is the company in this business? How many similar businesses are there in
this location? What the new location is supposed to provide: new products or new
market? How far is the competitor’s location from the company’s prospective
location?
Step 2 – Understand the Demographics − Literacy of customers in the prospective
location, age groups, profession, income groups, lifestyles, religion.
Step 3 – Evaluate the Market Potential − Density of population in the prospective
location, anticipation of competition impact, estimation of product demand,
knowledge of laws and regulations in operations.
Step 4 - Identify Alternative Locations − Is there any other potential location?
What is its cost of occupancy? Which factors can be compromised if there is a better
location around?
Step 5 – Finalize the best and most suitable Location for the retail outlet.