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Retail point of sale: 4 tips to choose better

The choice of commercial location is crucial for the success or failure of any physical retail business. With that in mind, we've listed 4 valuable tips from our experts that will help you choose the best location for your business.

What the experts say

The 4 main points to pay attention to when choosing are:

Location x Target Audience

It must be kept in mind that this factor is totally relative. The important thing before spending time and resources evaluating a commercial location is to find regions that are aligned with the brand's positioning and from there refine the searches: ''there is not necessarily the best commercial location, there is the best commercial location for that brand profile . For example, being installed in a popular shopping mall does not work for a brand that operates in the luxury market. Just as a popular retailer is unlikely to succeed on a street famous for its A''-oriented boutiques, says Manuel Puig, retail specialist at Cushman & Wakefield.

According to Manuel, an interesting thermometer to measure whether that location is aligned with the brand's positioning is to analyze whether there are any co-tenants there: ''co-tenants are non-competing brands, but which have the same positioning and reach the same audience,'' he explains. The presence of co-tenants can be a good indicator.

Study on the flow of people

To help choose the commercial location, it is necessary to take into account what type of customer the company wants to attract - the one who buys on impulse, for convenience, destination (which travels to the company) or the one passing through. With this in mind, it is necessary to study whether the location matches the proposed scenario. For example, if people are going to travel to go to the place, what is the access like? Do you have parking? Is there traffic? traffic lights? In the case of impulse buying, does the commercial point have visibility for a good window or facade?

Positioning yourself in the path of the target audience is a good strategy to take advantage of the flow of people, and a very common way of doing this is to stay close to the so-called anchors: ''anchors are destination stores such as well-known department stores, supermarkets, cinemas or public services as it saves time, transport infrastructures such as subway and train. Depending on the desired audience, a commercial point close to these establishments may be interesting'', reveals the specialist.

Location history

Researching past businesses that have operated in the area can help predict potential problems and identify characteristics of the region. You can even request the occupancy history from the owner of the commercial point. Very high turnover in short time intervals and long vacancy periods can be points of attention.

Physical and legal issues of the property

A basic issue, but one that many forget is the need for a thorough analysis of the state of conservation of the site, accessibility, costs of a possible renovation, price per m², as well as bureaucratic issues such as licenses and permits.

Expert advice

A good business point study can help mitigate risks and Cushman & Wakefield has all the tools for this assessment. In addition to the extensive knowledge of retail, working strongly in the field, the company has qualified specialists to identify unique opportunities and trends, and also has studies to map locations aligned with the business profile, such as socioeconomic and demographic aspects, growth forecast, valuation and others.

Geomarketing studies also help to strategically position customers in the market, as they identify competitors and eliminate commercial spots where there is oversupply.

Learn more about Cushman & Wakefield's strategic location selection consultancy for retailers.

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