When starting or expanding a retail business, choosing the right premises is crucial for its success. The location, size, layout, and overall suitability of the retail space can significantly impact your customer traffic, sales, and overall brand image. Here are some important factors to consider when selecting the right retail premises:
- Location: The old adage “location, location, location” holds true in retail. Assess the potential footfall, accessibility, and visibility of the location. Consider factors such as nearby competition, target market demographics, parking facilities, public transportation access, and local amenities.
- Target Market: Understand your target market and choose a location that aligns with their preferences and needs. For example, if your business caters to a younger demographic, a vibrant and trendy area might be more suitable. Conduct market research to identify areas where your target customers are likely to frequent.
- Space Requirements: Determine your space requirements based on the type of retail business you have. Consider factors such as the size of the sales floor, storage areas, staff facilities, fitting rooms, and any additional space needed for expansion in the future. Ensure the premises can accommodate your current and future needs.
- Budget: Set a realistic budget for your retail space, taking into account rent or lease costs, utilities, maintenance expenses, and any necessary renovations or improvements. Ensure the premises you choose align with your budgetary constraints and provide good value for money.
- Lease Terms: Carefully review the terms and conditions of the lease agreement. Consider the length of the lease, rent increases, renewal options, and any restrictions or limitations imposed by the landlord. Seek legal advice if needed to ensure you understand and negotiate favorable lease terms.
- Infrastructure and Utilities: Check the condition of the premises’ infrastructure, including electrical, plumbing, heating, and cooling systems. Assess the availability and reliability of essential utilities such as water, electricity, and internet connectivity. Ensure the premises meet your operational requirements.
- Zoning and Permits: Verify that the retail premises are appropriately zoned for your type of business. Research local regulations and permits required for your specific retail activities. Ensure compliance with zoning regulations to avoid any legal or operational issues.
- Security and Safety: Prioritize the safety and security of your staff, customers, and inventory. Evaluate the premises for features such as security systems, fire safety measures, emergency exits, and compliance with building codes. Consider the crime rate and general safety of the surrounding area.
- Future Growth Potential: Assess the potential for growth and expansion in the chosen location. Consider the development plans for the area, population growth, and economic trends. Choosing a retail space with growth potential can save you from the hassle of relocating in the future.
- Seek Professional Advice: Engage the services of a commercial real estate agent or consultant who specializes in retail properties. They can help you identify suitable options, negotiate lease terms, and provide valuable insights based on their industry expertise.
Choosing the right retail premises requires careful consideration of various factors that impact the success of your business. By conducting thorough research, seeking professional advice, and aligning the premises with your business goals, you can make an informed decision that sets a strong foundation for your retail venture.
The ‘Right’ Side of The Street
The phenomenon of people gravitating towards one side of the street in high streets can be attributed to several factors, including human behavior and psychological tendencies. Here are some possible explanations for the “right side of the street” phenomenon:
- Habitual Behavior: Human beings tend to follow familiar patterns and routines. If a particular side of the street has historically been more popular or has had a higher concentration of businesses, people may develop a habit of walking on that side without consciously thinking about it.
- Retail Store Layout: Retailers often strategically position their entrances and displays to attract customer attention. If a majority of stores on one side of the street have their entrances and visually appealing displays facing that direction, it can naturally draw more foot traffic to that side.
- Visual Preference: Studies have shown that people generally have a preference for scanning and perceiving information from left to right, which may influence their tendency to gravitate towards the right side of the street. This preference aligns with the reading and writing patterns in many cultures.
- Storefront Appearance: The appearance and presentation of storefronts can influence consumer behavior. If the storefronts on one side of the street appear more attractive, well-maintained, or visually appealing, it can subconsciously attract people to that side.
- Sunlight and Shade: The direction and angle of sunlight throughout the day can influence people’s preference for one side of the street. For example, if one side offers more shade during hot weather or provides a more pleasant walking experience due to the positioning of buildings, people may naturally be drawn to that side.
- Social Influence: People are influenced by the behavior of others around them. If they observe a higher concentration of pedestrians or shoppers on one side of the street, they may feel more inclined to join the crowd and follow the same path.
It’s important to note that the “right side of the street” phenomenon may vary depending on cultural norms, local customs, and individual preferences. Additionally, the specific dynamics of each high street can contribute to unique patterns of pedestrian movement. Understanding these factors can be beneficial for businesses seeking to maximize their exposure and attract customers on high streets.
Simply stand and watch where people go. In some instances people will walk down the left and then cross to the right.
Finding an Area that Encourages New Businesses
Throughout the UK, there are many cities that have created specific plans devoted to encouraging new retail businesses. Norwich, Northamptonshire, Oxford and many other communities have focused their efforts on encouraging, developing and sustaining new retail establishments, business sectors and the infrastructure needed to promote investment and success.
In Part I of our two-part article devoted to helping you choose the right premises for your business, we will consider what defines a supportive municipal environment for new companies. Although there will be individual nuances you’ll want to bear in mind when selecting the specific address for your storefront, there are broader issues to be evaluated first before you choose the community in which your company will reside.
Regional and National Reputation
First, starting a retail establishment in a city or area that has an economic plan devoted to developing and advocating its regional and national reputation is desirable. If a municipality is willing to put forth the effort to attract various types of companies, especially large employers, then the ground will be fertile for retailers. Also, there is likely to be development money for new businesses.
Business Diversity
Regions that are interested in an economy that embraces various types of businesses tend to create a more stable trade environment. If there’s a focus on one sector, such as high tech, and not much else, the local economy will ebb and flow as does that one enterprise category. Additionally, a mixture of small, medium and large companies tend to offer more opportunity due to the range of business traffic they attract.
Emphasis on Education
A city that wants to develop workforce that is continually being educated is a city that will foster ongoing growth. Searching through history, one of the trends one discovers is that economic instability occurs when workers are unable to adapt through education to changing developments in technology, business opportunities and economic shifts. Also, there is a direct relationship between continued education and earning power, which translates into more dispensable income that can be spent at local retailers.
Sound Economic Development Plan
A city or region that has created a well thought out economic development plan is one that has the best chance at succeeding. The plan should include a five to ten year timeframe and a commitment to reviewing and modifying the plan bi-annually of annually.
Key elements in any plan include:
- A coalition of government, community and economic sources devoted to implementing and supporting the plan.
- A clear description of challenges that the municipality is going to undertake.
- Specific goals relating to the workforce, investment and educational opportunities.
- A description of constituents to be served.
- A specific course of action, which is outlined and detailed.
- Particulars regarding the development of infrastructure.
- A clear understanding of the strengths and weaknesses within that community.
- A realistic statement of how the city relates to the region and nation as an economic, cultural and educational force.
- A timeline outlining how the plan will be further developed or implemented.
With any plan, you are looking for a reasonable analysis of the existing situation and how it will be altered. Many plans will denote specific geographic areas that will be developed or will describe the characteristics of the types of neighborhoods they are interested in serving. Consider how your business will literally fit into that area.
Next Step
Part II focuses on what you’ll need to consider for your specific establishment. Along with reviewing this next article, if you’re creating your first retail storefront, you’ll want to read our piece entitled Developing a Solid Business Plan—Details You Won’t Want to Forget.