Retail success begins long before opening day, with selecting the optimal location and retail format as the critical first step. A strong brand in an unsuitable location will face challenges, while a strong brand in the ideal location can flourish.
After more than 35 years of helping retailers expand across North America, it’s clear that many businesses choose a location based solely on availability, rental rates, or foot traffic. However, these factors are only part of the equation, and retailers must consider where their customers will naturally find and engage with their brand.
Retail Format Options
Today’s retailers have more options than ever before, and opening a traditional storefront isn’t always the best place to start. Depending on a company’s goals, budget, timeline, and stage of growth, they may consider Retail Merchandising Units (RMUs), permanent brick-and-mortar locations, or other formats. Each serves a different purpose, such as testing a new market, gaining seasonal exposure, or launching a new brand.
The key to success isn’t simply finding space, but finding the right retail setting for the business. This involves evaluating numerous factors, including co-tenancy and neighboring retailers, to ensure the location aligns with the brand’s target customer.
Read Also: When Permits Are Required for Home Renovations
Evaluating Location Factors
Before recommending a location, it’s essential to evaluate factors such as traffic, demographics, and competition. The highest traffic location isn’t always the best location, as success comes from placing the business where the ideal customer already shops.
Developing an expansion strategy is also important, and many retailers sign leases without fully understanding important provisions such as operating expenses, exclusivity clauses, and renewal options. Having an experienced partner at the negotiating table can often save more than it costs.
Customized Retail Strategies
Every brand has a different journey, and there’s no one-size-fits-all solution. An emerging apparel brand has different needs than an automated retail concept, and a luxury brand requires a different environment than a value-focused concept. A customized retail strategy that supports the brand’s long-term success is essential.
