| Retail store location selection is the most important | | | | distance that a customer is expected to travel to |
| strategic decision. Retailers could do with | | | | the retail store but also are required to know |
| assessments by considering a range of aspects prior | | | | whether the business climate would be favorable to |
| to selecting a location. Firstly, the location is the prime | | | | the retailers. |
| factor that customers look into before they head | | | | Next, it is necessary for the retailers to find out the |
| out to shop. Customers are more than happy to | | | | population of the area. They need to identify |
| save time taken to travel and hence see which retail | | | | whether there is a population growth or decline. It is |
| store is the closest. Secondly, it is long term decision | | | | idyllic to locate in area where there is general growth |
| and investment. Retailers need to live with it for a | | | | in population. Retailers need to estimate the store |
| long period of time. Finally, retailers need check on | | | | sales and profitability based on the patronage of the |
| the availability of their suitable best location in the | | | | locality. |
| market. There is a possibility that it would have been | | | | Retailers need to look at location attractiveness. |
| already taken by someone else. | | | | Analysis such as road patterns, road conditions, |
| A trade area can be determined by customer | | | | natural barriers, artificial barriers, visibility, traffic flow |
| spotting techniques. Analyst need to consider | | | | and congestion are vital for an attractive store |
| different factors such as checking the customer | | | | location. |
| demographics, age distribution, consumer market, | | | | 1. Road patterns like major highways and freeways |
| psychographics, annual household income category, | | | | should make possible for customers to travel in ease |
| environment and safety. These can be achieved by | | | | to the retail store |
| conducting market research. | | | | 2. Road conditions should be good. This accounts for |
| 1. Checking the customer demographics: is a statistical | | | | not only the repair status of the road but also the |
| report on the total number of customers in the area, | | | | traffic signals, the age limit, congestion and number |
| their nature of work, unemployment rate and recent | | | | of lanes |
| migrants | | | | 3. Natural barriers such has rivers or mountains and |
| 2. Age distribution: report contains details on | | | | artificial barriers like bridges, railway tracks and parks |
| customers age and the gender | | | | should be taken under consideration |
| 3. Consumer market: shows information such as the | | | | 4. Retail store should be easily visible to the |
| percentage of households with 4 Wheelers, | | | | customers |
| percentage households with 2 wheelers, annual | | | | 5. The parking lots must be sufficient. The traffic |
| household income, annual household saving | | | | flow of people should not be such that it impedes |
| 4. Psychographics: is a report on customer whether | | | | the store by congestion and overcrowding the place |
| they are youths, middle age, experimentation, | | | | Retailers with a very strong format can locate in a |
| westernized, cosmopolitans or metropolitans. | | | | high competitive area. Competition is defined based |
| 5. Annual household income category: contains details | | | | on the type of retail format the retailers plan to go |
| of the customers income whether they fall under | | | | for. Once we define the competition it is easier to |
| 1000 lpa. | | | | identify other retail competitors and retailers can |
| 6. Environment: Retailers need to look at | | | | understand the competitor's by evaluating their |
| neighborhood traffic generators such as restaurants, | | | | strengths and weaknesses. The most common way |
| number of tourist places to visit, adequacy of parks, | | | | to learn about the competitors is by fieldwork and |
| movie halls, schools, colleges and hospital complexes. | | | | through their websites (if present). By being ignorant |
| 7. Safety: It is always safe to check the crime rate in | | | | about the competitors, the retailers can cannibalize |
| the vicinity such as the number of murders, crime | | | | their sales. However, the safest strategy is to select |
| against women, theft and robbery. This helps out | | | | a location with less competition. |
| retailers to ensure theirs as well as their customer's | | | | Retail store location selection must not be done in |
| protection. | | | | haste. It requires time and mathematical strategies. If |
| Retail analysts need to identify the probability that a | | | | retailers are not sure about a location then the best |
| customer would shop at their retailer store | | | | fit would to wait till they acquire the suitable location. |
| irrespective of the presence of other competitor's | | | | It is better to delay to open a store in right location |
| store. Analysts have to not only understand the | | | | rather than decide on poor location and suffer from |
| customer's lifestyle, social culture and the time | | | | problems occurred from it. |