Store Location

As a retailer, you should know that your store's location can have a profound effect on the success or failure of your business.

Four factors should be considered, when choosing a location, that is:

• Zoning: Ensure the area is zoned for retail businesses.
• Demographics: Determine if the demographics of the local population are a good fit with your business (for example, age of the population, income, family size, and so on).
• Traffic analysis: Ensure that you are in a high traffic area and that it is easily accessible (public transit, parking, and so forth).
• Competition: Make sure that any stores that are close by are complementary and not in direct competition with your business.

Here are some examples of the specific things you should consider for specific types of stores:

• Convenience stores (supermarkets, hardware, bakeries, drug stores, and so on): If you have a convenience store, you would want to locate in a busy mall or other high traffic area that would allow easy access for quick and lower priced purchases. Customers like being able to make multiple purchases in one place, so being co-located with complimentary convenience stores (for example, hardware and supermarket located in the same parking lot) can help boost your business.
• Specialty stores (selling unique, hard to find products): If you have a specialty store, your products are more unique and often customers do not mind travelling out of the way to purchase your specific products.
• Shoppers' stores (clothing, major appliances, and so on): If your business is a "shoppers-type store", you would want to locate in a shopping centre that allows the customer to shop around before purchasing. Many items are upscale goods and are sold at a higher price. Retail stores located in shopping malls provide competition and are usually more successful than in a location by themselves.

You should check with your city's zoning department for insights on tentatively selected retail locations. Make sure you will not have any restrictions that will hamper or limit your operation. You will also want to check if any construction or changes in city traffic will present a barrier to your operation.

Leases

Before you enter into a long-term lease, decide how long you wish to stay at that location. Some issues to consider include:

• Do you plan to operate your business indefinitely or for a set number of years?
• Will you be able to expand your business at this location?
• Is your lease flexible, so you have the option to renew or seek another location, if needed?
• Is your rent fixed or is it pegged to sales volume?
• Make sure any promises the property owner has made to you are in writing. Some examples are: repairs, construction, decorating, alterations and maintenance.

Help in Choosing a Location

You may wish to hire a consultant to analyze two or three locations that you have tentatively selected. Considering that you want the best location for your store, it pays to get as much assistance as possible. If you haven't found a suitable location, don't open your store until you are sure you have what you want.

• Demographics
  
  http://www.canadabusiness.ca/eng/88/191/
  Get data that sheds light on population characteristics such as location, age, income, education level, and more.
• Choosing a Commercial Building
  
  http://www.bdc.ca/en/advice_centre/articles/Pages/acquisition_building_criteria.aspx
  Find out how to choose the right commercial building for your business.