Help Me Choose Location for New Store

Discussion in 'Growing and Managing a Business' started by Ocean Archer, Aug 25, 2012.

  1. Ocean Archer

    Ocean Archer
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    This will be our first store selling baby products. I've done the demographics research and determined the appropriate area for my store. I've narrowed my search down to 2 spaces, and I'm having a hard time choosing between the 2.

    "Crossroads":
    Pros: Perfect size for us (28,000 square feet). Very large (1.3 million square feet GLA) regional power center with heavy shopping traffic. Diverse retailers allows people to get just about everything they need in one shopping trip. Good highway signage on highway and also at exit ramp stop light.
    Cons: Available space is not visible from the street or from main entrance of shopping center. Negligible foot traffic due to size of power center. Although sign at highway exit ramp is in a very high traffic area, the signage monument is shared with 4 other merchants, so it can get a bit lost.

    "Santan":
    Pros: Freestanding building is highly visible from the street.
    Cons: Although it's close to a lot of wonderful shopping, the shopping center itself has VERY few visitors per day. The space is smaller than ideal (19,290 sf, so we'd have to rent a 7,500sf neighboring space that's across the parking lot). Although visibility is great, the street that the store faces only has a traffic count of ~2500/day.

    Here are the 2 sites:

    "Crossroads" http://w-retail.com/wp-content/uploads/2012/01/crossroads_flyer.pdf
    "Santan" http://www.loopnet.com/Attachments/B/F/5/BF5C8FB6-5860-4256-921E-A0C678F6AD6A.pdf

    We're going to be a destination store, so if geographical location is good, does it really matter what kind of shopping center the store is in? We're going to have a substantial marketing budget, but would it be easier to draw our customers to our store if we have stronger neighbors? Or should it just come down to which place gives us the better deal?

    Thanks!
     
  2. lwonnaco

    lwonnaco
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    If you move into a regional, there are more opportunities for customers to spend their $$ with your neighbors, not you. If you move into the freestanding, you can have a greater opportunity for casual shoppers to come in and buy than the regional. Even if you have a brick and mortar location, your website has to complement it and vice versa. Make sure there are online sales that cannot be found in the store. If you are paying $15,000 a month on the lease, better plan on making $45,000 to cover all overhead costs for your store. Don't forget to contact all hospitals within 100 miles and offer a gift and coupon to all new parents.
     
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  3. Fergal

    Fergal
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    It's difficult to give an opinion as to the best location without knowing more about the areas or actually visiting them. However, I wouldn't underestimate the importance of passing trade as it can do so much to improve awareness of your business.

    Also have you given consideration to the comparative costs associated with each of the locations?
     
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  4. Ocean Archer

    Ocean Archer
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    Thanks for your responses.

    @lwonnaco: I wish we could draw from 100 miles :) I'd be content to just take a large part of our 5-mile radius. We will definitely market to hospital delivery centers, but our primary marketing focus will be prenatal marketing by way of free gifts to each new prenatal patient at obstetrician offices.

    @fergal: yeah, it's pretty hard to say which is better without looking at them first hand. Even after visiting the sites, it's still a challenge. The rent cost of Crossroads will be roughly $30,000 per month vs. roughly $25,000 per month for Santan. Those are the asking prices including NNN. The good part is we really like both places, which gives us good leverage during negotiations.

    I think I'm leaning more toward the Crossroads place. I felt like it was less visible, but we would have rights to several large highway pylons for our sign, one of which is at a busy exit ramp/intersection that has roughly 50,000 vpd. The only thing is, it would be one of 6 signs on that pylon. What percentage of commuters would actually notice it?

    Here's what it looks like: http://www.vestartenantservices.com/Crossroads/images_CR/CTC-ST12-leasing.jpg

    We would take the place of the "Linens n Things" sign.

    I wish there were a published study of the effectiveness of freeway signage.
     

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