Asked by : Alok Sharma, Retail , Leading Consultancy Firm
Industry : Retail Chain/Logistics
Functional Area : Channel Management
Activity: Question posted: 01 25 2010 16:50:28 +0000, 7 answers, 2755 views, last activity 07 06 2010 20:18:08 +0000
Every one knows to have a profitable store you should be at right location; but what all key attributes which makes that site impressive.
I find it difficult to answer this question in holistic approach as today there are many retail formats & location should be product/format/brand oriented.
There can be hyper/mega malls which needs hell out of space or there can be fashion brands which needs rather prime location like high streets or malls or there can be kiosks like of Amul where things can be different for choosing location.
Store like Sony World or a Provogue studio or a furniture showroom by Style-Spa can have their own priorities for this though the target audience is more or less belongs to the same consumer class. Like the latter one can be seen in many cities on the first floor.(Furniture demands huge space & its wise to go for the first floor to save costs).
One very basic funda what is true for all, I believe is profitability & growth potential, superfluous operational costs due to exorbitant rent or usurious land prices should be avoided other wise recessions hits such stores very badly & in economic cycle they are bound to come.
Competition activities plays an important role, due to that sometimes, what I have experience, cash rich brands operates even with higher operating costs just to maintain the presence & brand equity in a certain place.
Though they exists with whatsoever reasons, close proximity between two stores of similar brand should be avoided.
Knowledge of local market places, buying patterns, spending power & other behavioral understanding can certainly do wonders & that should be thoroughly studied before making any decision.
There are several other factors like mainly the visibility & others like space for signage etc, neighboring stores, parking, legal issues etc.
Thanks for referring Alok, I have came across some of you comments here which are really superb.
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