Some may argue that conventional retail business is going out of fashion. I disagree! Instead, I think we’re seeing a trend where the top retail businesses are showing just how good and valuable they are, while other ones simply can’t deal with the demands of the modern world, and are losing out to online competitors.
3 key factors for retail business success
Make no mistake about it, there’s still room for a retail business in today’s world. All you have to do is ensure you build yours in a way that means it will survive the current climate. Without further ado, here’s a quick and easy guide to help you build the perfect retail business.
Location, location, location
More often than not, the retail businesses that fail are the ones in poor locations. When a lot of your money comes from foot traffic going to a store, you better believe that the location of your store makes a massive difference to how successful you are.
It’s just simple maths, really. If you locate your business in a retail park or busy shopping centre with loads of foot traffic every day, then there’s a high chance you’ll get people popping in and buying stuff. It’s obviously not guaranteed, but the odds are higher than if your store is in a small town in the middle of nowhere with hardly any inhabitants.
When it comes to the location, you’re looking for quite busy areas. Not only that, you’re looking for busy areas where there’s a market demand for your store. It’s surprisingly easy to determine if there’s a market need for your type of retail business or not, all you have to do is conduct research.
For me, the ideal location is one where you’re in a busy area, and the people in that area are very active in their retail market. Not only that, but you want other businesses nearby and around you too, as it can help you network and strike deals and partnerships to grow your business!
Retail business shop design
Did you know that something as simple as the way your retail shop is designed can play a role in how successful it is? It’s true, and there are two main things to consider here; the actual look and design of it from the outside to in, and the way it’s laid out.
The design of your retail business creates a first and second impression for wandering consumers. It must look nice and eye-catching from the outside, to draw people in. Make use of a big shop window to showcase some of your top products and offers, along with bold, professional signage to ensure no one misses it.
The exterior design of your shop creates the first impression, and the interior design/layout creates the second impression to further cement your business in the minds of consumers. Find yourself a quality shop fitout that looks modern and enhances your store on the inside. As far as layout goes, you need to organise your products and shelves so they’re easy to find and people can clearly identify which part of the store they need to go to to find certain things. A good tip here is to use overhead signs in the different aisles to indicate what’s sold where in your store. All of this comes together to create a store that draws customers in, then influences them to buy things because of the easy layout.
Competition
Even if it is said again and again that competition will stimulate business, it can also place a heavy burden on small specialist shops. The problem of large retailers compared to small specialty stores is well known. The book trade can be cited as an example at this point. More and more small booksellers can no longer keep their businesses because customers buy in shops or online, where the range is significantly larger. The competitors should therefore be scrutinized.
Target customers
What is my target audience? How is it composed and where can it be found? When looking for a suitable location for the sales area, the target group plays a major role. Even in the best location, there can be no success if people don’t shop here who are also interested in what the store has to offer. A precise definition of the target group is therefore essential and an important part of the creation of the business plan.
Embracing online retail business
People often look at traditional and online retail as if they’re two totally different things. It’s almost like you can’t have both, it’s either one or the other. There’s no reason you can’t start a successful retail business that operates both traditionally and online. Many retailers don’t just focus on local sales. Instead, they also use the opportunity to become active in online business. Before opening a retail store, it is important to check how the online offer is set up. Since the competition at this point is carried out nationally and in some cases also internationally, the competition is significantly greater. Unique selling points are an important aspect.
In fact, for the overall success of your business, it makes sense to embrace the online model as well. Set up an online store where people can browse through your products and possibly even pay to have them delivered. If you don’t want to do that because you’re afraid it will damage traditional sales through your store, then just use your site as an online catalogue of sorts.
People can browse your products and check their availability in your store, before heading down to purchase them. Or, they can order them ahead of time and go down to pick them up. Regardless, don’t be afraid of the online realm, embrace it!
Conclusion
Building the perfect retail business starts with this guide. There are still other things to consider, such as marketing your company and reeling in as much foot/web traffic as possible. But, if you’re looking for three key things to focus on as you build your business, then these are the ones.
