When opening a new store, every company strives to maximize the profit from each investment to achieve successful development of the project and business growth. One of the key factors when choosing the location for a new store is the guarantee of high sales rates. At this point you can’t underestimate analytical data gathered via footfall systems.
Many companies in retail make mistakes when choosing a new location, which can lead to budget overrun. To make the right choice and determine an appropriate budget for the planned expansion you need to estimate current sales and revenue. Customer count in the already opened stores can help predict traffic directions at the new location, which can help adjust the company’s budget and strategy.
Requirements and Expectations
When looking for a new location, everyone wants it to live up to all their expectations: it needs to have room for everything but shouldn’t be too big; it needs to be in a popular spot but shouldn’t have very high rent. Try to determine which factors are necessary for a successful launch. How much space does the store really need? What location would be too big? A rational retailer with the experience of renting space for store chains won’t rent a space that’s bigger than they need. Moreover, they know what conditions will be beneficial to them, if they need to look for an already decorated place or a shell and core one so it can be designed according to the brand’s style. And don’t forget about the possibility to install facilities and changing rooms.
It’s widely known that location is the most important factor in retail success and opening a new store can noticeably influence the company’s work. That’s why a counting system can be of great help to the owner. If the landowner is willing to share the information on the customer traffic, you should definitely consider it before making a decision.
Commercial Real Estate Agency
A tight schedule for finding a new place or lack of confidence can make some companies steer towards employing real estate agencies to sign the most profitable lease agreement. Using their experience can make it easier but you also need to be prepared to pay more, since such services can be rather expensive.
All companies should be able to discuss the terms of their lease with the landowner. That’s why it’s important to carefully consider your priorities and analyze all the offers. The right thing to do would be to rate your preferences that should include the following:
Terms of the lease. Sometimes the landowner can agree to a compromise with businesses willing to sign the contract for a longer term.
Payment in advance. You might get a significant discount having payed the rent a year in advance.
Location near your competitors. You need to discuss with the potential landowner whether the location is close to your competition.
Every business might find itself needing a new location, in which case you should define your priorities and act according to your plan. People counting systems can be of great help in choosing the right location. By analyzing the behavior of their customers and negotiating with the landowners, companies can get the location they need for a reasonable price and take another step towards success.