By Bizna Brand Analyst
A good location is important to the success of a retail business. For small businesses, the advantages to opening a retail store in a busy area can include improved revenue and increased marketing exposure. In some cases, setting up a retail business in a busy area can cost more in rent and leasing costs than a location in a more remote area. But for a small business on a budget, the advantages to a busy location can outweigh the extra costs.
Foot Traffic
One benefit of being in a busy area is the availability of a significant amount of foot traffic. If you want to advertise pricing specials, then one option is to put a sign in the window and grab the attention of the people walking by. The large amount of foot traffic in a busy area offers retailers a ready-made customer base that will decide to enter your store out of curiosity at first, but then eventually become longtime customers.
Marketing
The startup marketing plan of a retail store often includes paying for advertising to draw attention to your location. When you are in a busy area, you have the option of experimenting with different marketing approaches that can prove to be less expensive but more effective. Spend some time experimenting with the response you get from your foot traffic before spending money on marketing programs. For example, announce an upcoming sale only by putting signs up in your window for the foot traffic to see. Then try another pricing promotion the next month that you advertise through buying ads in local media outlets. Compare the results of the two approaches and find a way to utilize your foot traffic that will save you money on marketing.
Vendor Relationship
The foot traffic in your busy retail location can make you a popular customer to your vendors. Manufacturers that want to launch new products to a company that can create significant exposure will see your busy area as a prime location for such a promotion. The more you can get your vendors involved in utilizing the target audience available at your retail store, the more attention you create for your business.
Variety
A busy location offers a wide variety of potential customers. Cross sections of many different marketing demographics pass by your retail location every day and give you the chance to offer a wider variety of products that can improve your profit margin. Monitor the kinds of customers that come into your store and begin to offer products that would sell quickly. For example, if you have a clothing store that is frequented by parents with young children, then setting up a small candy counter could prove to be profitable.
