How Do Retailers Choose Locations

There are three phases of choosing a location for your retail business: selection of a city, choice of an area or type of location within a city, and identification of a specific site. … Total retail trade potential for different lines of trade. Number and size of competition. Quality and aggressiveness of competition.

What factors do retailers consider when deciding on a particular site?

• Connectivity and ease of traffic flow: These are the two important issues that a retailer must consider while selecting a site. …
• Parking facility: ADVERTISEMENTS: …
• Cost effectiveness: …
• Presence of competitors:

How do retailers determine the trade area for a store?

Retailers typically have solid data to map out the trade area because customer transaction records are available from marketing analytics firms and other sources. The data comes from point-of-sale (POS) data and other means like traffic studies (canvassing parking lots to check license plates).