According to research, a number of factors play an important role in choosing the location for a retail store and this is one of the most important decisions you will be making.
Finding the right location for your new fitness or combat sports retail store is not straightforward but we are here to help! This blog will guide you through the factors you need to consider, so read on below.
Having your fitness retail store in an area that is easily accessible and visible to your target customers is a major factor that will make or break your business. You need to consider other factors such as the rent, size, and layout of the facility alongside the traffic flow and competition you will face in the location you have chosen.
If you choose your location strategically you will see a significant boost in your company’s performance and sales. Not selecting your location strategically can result in an increase in your expenses and may subsequently be the reason you won’t see any growth in your revenue.
Retail location selection can promote your fitness store as it acts as a successful retail strategy. With the right location, you can target your audience and can get the most out of your marketing and management activities.
Following are the factors you need to consider for selecting the perfect location for your fitness store:
Before investing in the perfect retail store location you need to figure out whether your business activity is allowed there or not. You need to properly check the commercial and residential zoning regulations of the location that you are choosing.
If your business will be close to commercial areas, it can help you with extra foot traffic but if you are near a residential area it can make your store more easily accessible to your target audience. So you need to research the zoning regulations of the locations you are selecting.
You most probably have done your target audience research and know in-depth about your target customer. This research will let you know about the demographics and psychographics of your target audience. You need to consider where your target audience lives and if it is easy for them to visit your store.
You need to make sure that the location you are selecting is near your target audience. If you don’t consider this point there is a chance that you might not have a lot of footfall as most people won’t be interested in buying fitness sports goods. Your ideal location is where there is a high demand for the products that you are selling.
For example, selling Boxing or MMA gear in an area where there is a higher number of retirement-aged people will probably not get you a lot of sales. The reason is that usually retirement-aged people are not as active as people in their mid-twenties or thirties.
You can select the facility based on the space which you might require for your retail store. You can do that by comparing the retail store locations available to you and selecting the one that suits your budget and overall business plan.
As for the size of your retail store, it will depend on the equipment you want to sell. If you will be selling Fitness, Boxing or MMA gear such as boxing gloves, punch bags, weightlifting belts etc, they won’t require a lot of space so a 1000 square feet facility will be enough. But if you are selling big machinery then you might need to double that space.
You also need to make sure that the store has basic facilities such as electricity, gas, and a proper sewer system. Other than the basic facilities you need to have a good internet service at your retail store.
As for the layout of your retail store, there are a lot of layout ideas and designs which you can consider. You need to select a layout which will be best for displaying the products that you will be selling and will generate maximum sales for you.
Setting up a budget is important as it will determine the locations you can consider for your new stores' location. This budgeting technique will let you assess the areas you can afford to rent out. Budgeting will help you set aside the amount required for your overall expenses and costs that may occur.
Price should be the main factor when you are selecting your retail store location. The reason is that you may not have the budget for some specific locations. You’ll need to calculate your rent, additional fees, remodelling costs, and the terms associated with the lease.
Some areas are more costly than others such as the rent of a 1000 square foot store in New York maybe double than that of a retail store in Texas. According to the rent and other expenses you can determine in which state you would want to open your retail store.
Healthy competition is always good for the business but you need to strategically plan out your location according to your competitors. You may want to select a location that is near your competitors as most of your target audience will be in those areas.
The thing you need to consider is how your competitors will be affecting your business. Your competitors can either share the customers that are visiting or you can go head to head with every other shopper that walks near your store.
Going head to head might not be the best approach as it can give a bad impression about your business. This approach might make it seem as if you are desperate to get the shopper to buy from your store.
You should avoid opening your retail store next to those competitors who either have better quality products or are offering the same products to customers for less than your asking price. You should consider the locations where other businesses complement your own business as both of you can benefit each other's business.
Foot traffic is also an important aspect for retail businesses as it lets you determine the potential number of buyers that regularly visit your store. Store traffic can determine the peak hours for your store and the peak days when potential buyers visit your store.
This information will let you determine whether the location you have selected will be profitable or not according to the rent and expenses you would have to pay. These factors will either make or break how your potential buyers will perceive your brand.
Remember that a location which is currently booming may not stay the same forever. You need to check whether the existing businesses are new in the area or if they are established for a longer period of time. New businesses mean that the area is still growing and already-established businesses mean that the area is already well-established.
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Accessibility means how easy it is for your target audience to reach your store. You should pick a store that is located in an area which is near your target audience, that they can easily access. It should be easy for them to commute to your location.
Other than the commute, factors such as the parking space should also be considered as it makes it convenient for the customers who drive cars. You just need to keep in mind the parking while evaluating your location operations.
Visibility means how easy it is for your target audience to see or spot your store amongst the others. When you are considering the visibility factor you need to see it from the customer’s point of view. You would require much less advertising if your store has good visibility.
As much as you want your store to be accessible to your target audience you need to choose a location that is also easily accessible to your suppliers. So it’s better to choose your location based on how it is accessible to both your target audience and suppliers.
Having a fitness retail store location that is easily accessible to your suppliers allows them to work smoothly with you. It will allow for the timely delivery of products and can become cost-effective for your suppliers and for your business as well.
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There are several factors you need to consider when choosing a location for your retail business. These include cost, facility size and layout, accessibility and visibility, traffic flow and your competitors.
Do your research based on these factors to select the right location that will make your business successful in the short and long term.