View Full Version : Where to locate???
12-02-2007, 04:25 PM
Im still writing my business plan and we have come with two different options to premesis.
Bearing in mind that we are opening an outdoor store offering clothing and equipment where would be ideal to locate?
I am going to pitch the location to the bank to see what they would think with regards to price, value for money and passing traffic / people but was also wondering what the forum thinks. :-)
A main street shopping centre unit that also faces on to main street in a busy town with about 90,000 people in a 15 mile radius.
Size 1530 sq feet. Brand new.
Price £38,000 a year
Limited or nearly no parking on Saturdays or busy days.
A business unit 2 miles from above on the outskirts of above town but on route to a major city. Population is same as above.
Size 1000 sq feet
Price: £7000 a year.
Loads of parking.
12-02-2007, 04:31 PM
I go to a large outdoor store located just outside Wakefield. It has parking but its so busy at weekends theres still not enough at times.
Its a big warehouse type building, I cant imagine going to a shop on a main street, the bigger building means they stock a much larger range.
Its about 40 mins drive from where I live and I would rather do that then fight in the centre and possibly come away with nothing!!
12-02-2007, 04:36 PM
It's a difficult question to answer - however, you may want to consider the types of businesses currently located in either location. Do they complement what you do in terms of attracting the right type of customers? Is there any existing competition?
Hope this helps
12-02-2007, 04:39 PM
I personally if could get the finance would go for the Town centre.
1. You are going to get a large amount of passing trade.
2. You will be easy to find
3. 90,000 walking pass means that a lot of people will see your shop and tell a friend about it if trying to find outdoor gear or if they need it themselfs.
4. Its a large floor so you have the ability to provide larger range of goods
5. There maybe limited parking but what busy shopping centre area has parking on saturdays, so this is not to much of a worry.
6. The price uearly price is high, do you think you can recover this + taking into account your staffing costs and general overheads?
As for the business unit, what do you mean? is it a large retail park or a small business industrial like unit?
1. The price is a whole lot lower so therefore may be easier to recover your costs
2. Population is the same + you have a wider potential customer area as its on the route to a large city.
3. You have a lot of parking which means for larger outdoor equipment, which a lot is large would be easier than carrying it around town.
4. You have a smaller area meaning you cannot sell as large range of products.
5. You may not get as much passing trade which may mean people will only visit your shop when they actually need something. Less chance of impulse buyers.
Overall I would personally go for the shopping centre area store.
12-02-2007, 04:47 PM
Hi Guys thanks for the replies.
The business unit outta town is just a lot of smallish unit setups for small business use provided by Enterprise NI. They are just like large garages. There is not really anything else like this other than a few computer shops, trade and manufacturing companies.
Inside the town centre the shop unit would receive alot of window shopping / passers by. THere is no competition in each area in this town. Nearest competition is about 15 miles away at present.
12-02-2007, 10:51 PM
By the sound of that, I'd go with the town centre location.
The town i live (Bridgend) sounds like a similar sized place. We have two outdoor type shops. one is Millet's, and occupies a small-medium sized shop in the town centre. The other is Countrywide, which is on the edge of an industrial estate about a mile out.
They're both busy, but Countrywide have a large warehouse type shop that is properly fitted out for retail. There are a lot of small retailers on the industrial estate with these garage type units, but most of them don't seem to do much call-in trade. The only one I've been to is a computer shop, which is always empty. Most seem to be online businesses.
13-02-2007, 09:29 AM
Now the thing worrying me is the price of the town centre unit. I'll have to find out what lease it is as well so I won't be tied in for x amount of years if things don't go according to plan.
It could work out very expensive and the banks may not favour this idea.
Say for a retail unit of this size (1530 sq feet), what would be the costs in fitting it out? I imagine it is still just an empty shell so would need everything.
13-02-2007, 10:23 AM
You would have a lot more money for stock if you went for option 2 which means you have more potential for making a return for your investment.
If you do go for an out of town option make sure that it looks like a retail environment. You get a lot of developments that are offered as shops or offices -can be a bit off-putting for customers sometimes.
vBulletin® v3.8.1, Copyright ©2000-2016, Jelsoft Enterprises Ltd.