Retailers choose locations based on a number of different things. They think about their target market, who is it and would they be likely to visit this location? They look at the demographic of the location and whether or not it fits their target market. They will look at the area’s population and consider if there are enough people living in this area for it to be worth opening a store here. They will also consider earnings of the people living in this location, do the people earn enough to go on frequent shopping trips and afford the brands products.
They will also look at the accessibility of this location. They will look at whether or not it is easy for people to get to this location and the different ways they can get to this location. They will look to see if the location has allocated car parking facilities or how far away the nearest car park is. They will also look at whether or not the parking is free. This is because people will be more likely to visit a location they can park in for free over somewhere they have to pay for parking. They will look at what types of public transport they can use to get to this location such as buses or trains and how far the walk from the bus stop or train station would be. They would also look at the amount of traffic in the area and if there is traffic a lot of the time. For example, a location is a busy area such as central London can sometimes be difficult to get to due to traffic and this may prevent a brand from choosing this location.
They will look at what competition they have at this location. They will want to have stores near to their competition to ensure they do not lose any sales, however, they will also not want to have too many competitors around them as this could have a negative effect on their sales. They will also look at the costs of having a store in this location. They will look at this because if the rent costs are very high they will need to have higher sales to compensate for this. This will also mean that the store will make less profit so they would be less likely to choose a retailer with high costs.
why do brands choose a loation?