3 minute read
Choosing your hardware store location
Location, location, location. It’s an age-old saying that will always be applicable to the commercial real estate market. A business needs to find the right location to be successful. But, as urban markets grow and choices for retail space diversify, finding the right location can be challenging.
Often, the best location for a brick-and-mortar retail business combines visibility, affordability, and rental terms you can live with. You need to be where the action is, so deciding where to put your business is extremely important.
Here are some important factors to consider when looking for a location for your hardware store:
KNOW YOUR TARGET MARKET
Every step in this process requires you to understand your customer and product. The right location will be dependent on who you’re selling to and their buying patterns. If you don’t understand your customer, you’ll never be able to make informed decisions on where to open your business.
ANALYSE YOUR COMPETITION
It is a smart move to place your store at a point which has businesses around that can eventually help drive traffic into your own store. Any business or category of product that is closely related to yours should help your business too.
Another important aspect to be considered is competition. “Quite simply, the best place to be is as close to your biggest competitor as you can be,” says Greg Kahn, founder and CEO of Kahn Research Group in Huntersville, North Carolina. And he’s right. Your competitors have already done all the research and have placed themselves in the best location for their target demographic, so take some notes from them.
Sometimes, locating your business near similar businesses can make your marketing easier. Potential customers will already be in the area looking for something along the lines of what you provide. But, if your major competitor provides a service or product that is too similar to yours or is significantly larger and already more successful, then you may want to look elsewhere.
RETAIL COMPATIBILITY
Only the exceptional operation, such as a restaurant or a freestanding discount store, can survive in isolation. A cluster of stores creates more traffic, exposes more people to your business, and creates a buying atmosphere that a single store cannot. Customers are attracted by crowds and like their shopping trips to be social outings.
Having said this, it’s critical to select the right community and site for your particular store. Will the other businesses generate traffic for your store? Or will you be located near operations that may clash with yours?
TRAFFIC, VISIBILITY AND ACCESSIBILITY
Don’t confuse a lot of traffic for a lot of customers. Retailers want to be located where there are many shoppers, but only if those shoppers meet the definition of their target market. Small retail stores may benefit from the traffic generated by nearby, larger stores.
Some questions to ask when researching the traffic, visibility and accessibility of your store include:
1. How many people walk or drive past the location?
2. How well is the area served by public transportation?
3. Can customers and delivery trucks easily get in and out of the parking lot?
4. Is there adequate parking?
When considering visibility, look at the location from the customer’s viewpoint. In many cases, the better visibility your retail store has, the less advertising is needed.
Don’t feel rushed into deciding on where to put your store. Take your time and research the area. If you have to change your schedule and push back the date of the store’s opening, then do so. Waiting to find the perfect store location is better than just settling for the first place that comes along.
