Choosing A Store Location Essay Sample
Type of paper: Essay
Topic: Business, Customers, Competition, Trade, Market, Sales, Lifestyle, Accessibility
Business people should choose a strategic location for their business for easy accessibility and to attract the target market. Poor location could lead to massive incurrence of losses by the businesses because it leads to reduced sales hence under exploitation of the resources. A poor location hinders accessibility by the customers thereby turning the rival competitors. Poor location leads to loss of customers. Therefore, even the superior retailers find it hard to reach the market. As a result, the business incurs the normal expenses like the rent and wages but gets no returns due to lack of sales. For instance, if one locates the business in an unhealthy competitive area, it leads to losses. Additionally, if one locates a business in a less populated area, it means that the number of the consumers is also low leading to reduced sales.
Therefore, when choosing a store location, one should consider a wide variety of factors. The factors include; the competition level, the security, accessibility, the population, the fashion trends and the cost implications. Therefore, one should locate the business where one could enjoy a competitive advantage over the competitors for profit maximization. As a result, no one should locate a retail shop in a highly competitive area because the competitors would automatically overshadow one’s business. On the other hand, one prefers a secure business location to avoid losses through theft. It also assures the clients of the safety thereby feeling free when at the shop. However, retailers should locate the businesses in areas with many of the target market for increased revenues. In addition, the clients should also easily access the areas. The cost implication refers to the amount charged for the rent. Therefore, if the sales proceeds cannot meet all the business expenses, then one should look for an alternative location.
However, a retailer could develop a lifestyle profile of its target market by providing types and designs of the specialization goods. As a result, the retailer should stock all the substitutes of the goods. For this reason, one can meet the customer demands and preferences, and it helps in winning and retaining the customer’s loyalty. Additionally, one could provide goods for all levels of income to avoid hedging out some people. In addition, one should respect the beliefs of the customers by meeting their tastes and preferences. Nonetheless, one should provide high-quality goods and establish good customer relations because it helps in the retention of the consumers.
Nonetheless, a mega mall refers to an enormous shopping precinct. On the other hand, a lifestyle center refers to a shopping center that has several leisure facilities. One of the advantages of a shopping mall is that it makes it easy for the customers to find all different types of goods under one roof. However, one of the disadvantages of the mega malls is the excessive crowding thereby predisposing one to communicable diseases and theft. On the other hand, the lifestyle centers are convenient because the customers access both the goods and the relaxation facilities, but one of the disadvantages of the lifestyle centers is that people tend to overspend.
However, there are three different types of location types namely; brick and mortar where the customers and the retailers physically meet. Another one is the business in the cloud where there is no physical contact between the retailers and the customers. In most cases, such locations involve online businesses with the help of the internet. Lastly, the business on the go refer to the portable businesses.
Therefore, after gathering data and analyzing the locations available, one should use the following process for selecting a site. First, one should outline the project benchmarks, and the evaluation of the communities follows. After the evaluation, one should then come up with several communities that matched the criteria in order to have a definite view of what one prefers. After that, the process of identifying the real estate sites within the communities selected follows, after which one subjects them to an analysis. Nonetheless, one should also discuss the tax incentives after, which one acquires the site if the parties involved reach an agreement.