Location

It's an old adage that the three biggest success factors in retail are "location, location, and location." The adage is as relevant today as it was when William Thomas Dillard first used the phrase in the late 1930's in reference to the success of his department stores.

If you're a retailer, location is everything. At the most fundamental level, it drives both the type and the quantities of retail customers you'll be able to draw to your store and how easy it will be to get them there.

It starts with traffic.

Suppose you open a retail coffee shop. If you're on a major commuting route, your sign alone should be able to guarantee you a certain amount of business. But suppose your shop is one block off the commuting route. Or suppose it has no parking. One can easily see how that would affect business.

But what type of traffic?

If you have a specialty store of some sort. You will have to consider what type of traffic you're looking for. If you provide auto accessories, you may want to consider high traffic locations near gasoline stations or care dealers. If you sell hearing aids, you may want a location near senior centers or a hospital.

If you can't find a good location...

If high traffic locations that are appropriate for your market are not available, you will have to find other ways of inducing prospective clients to come to you. Consumers are more likely to go out of their way for expensive or specialty items than they are for commodities. If you don't offer that type of good or service, then you will have to rely on advertising and promotions to draw traffic.

Other factors.

There are other factors. Availability of public transportation, ample parking, neighborhood safety, proximity to other anchor locations (e.g. malls, large box stores, etc.) are all part of the location formula.

The key issue, however, is to remember that location is part of your marketing formula - it's not just about finding an affordable rent.